Why Software & Technology Company Roper Shares Are Down Today

Roper Technologies Inc ROP shares are trading lower after it reported fourth-quarter FY23 results.

Revenue increased 13% Y/Y to $1.61 billion, beating the analyst consensus estimate of $1.58 billion.

Gross profit increased to $1.125 billion from $1.002 billion a year ago. Operating income climbed to $462.8 million from $412.5 million the prior year quarter.

Adjusted EBITDA rose 11% Y/Y to $659 million, while the adjusted EBITDA margin contracted 60 basis points to 40.8%.

Adjusted EPS of $4.37 beat the analyst consensus estimate of $4.34.

Operating cash flow for the quarter totaled $622 million, with an adjusted operating cash flow rising 34% to $638 million.

The company held $214.3 million in cash and equivalents as of December 31, 2023.

Outlook: Roper expects FY24 revenue growth of 11%-12% vs. consensus of $6.69 billion and adjusted EPS of $17.85-$18.15 vs. $18.33 estimate.

For its first quarter, Roper expects adjusted EPS of $4.30-$4.34 against the Street view of $4.32.

Neil Hunn, President and CEO said, “We’re entering 2024 with continued positive momentum, fueled by the ongoing expansion of our recurring revenue base and demand for our businesses’ mission critical solutions. In addition, as previously announced last week, we reached an agreement to acquire Procare Solutions, a leading software provider for the childcare market. Procare is a terrific, high-growth addition to the Roper portfolio.”

Price Action: ROP shares are down 3.04% at $544.53 on the last check Wednesday.