Software Provider Roper Tech Boosts Annual Outlook Following Q1 Performance: The Details

Roper Technologies Inc ROP reported fiscal first-quarter 2024 revenue growth of 14% year-on-year to $1.68 billion, beating the analyst consensus estimate of $1.65 billion. Adjusted EPS of $4.41 beat the analyst consensus estimate of $4.34.

Gross profit increased to $1.18 billion from $1.02 billion a year ago. Operating income increased to $483.9 million from $360.1 million the prior quarter.

Adjusted EBITDA rose 16% year over year to $676 million, and margin expanded by 60 basis points to 40.2%.

Operating cash flow for the quarter totaled $531 million, up by 14% Y/Y.

The company held $198.4 million in cash and equivalents as of March 31, 2024.

Neil Hunn, Roper Technologies’ President and CEO said, “We completed our acquisition of Procare during the first quarter and remain excited about the value creation opportunity this represents for Roper.” “We are increasing our full year 2024 outlook, supported by our strong first quarter results, continued customer demand for our businesses’ mission critical solutions, and the ongoing expansion of our recurring revenue base.

Outlook: Roper expects FY24 revenue growth of ~12% (prior 11% – 12%) vs. consensus of $6.89 billion and adjusted EPS of $18.05 – $18.25 (prior $17.85 – $18.15) vs. $18.12 estimate.

 Roper expects adjusted EPS of $4.42 – $4.46 for its second quarter, compared to the Street view of $4.49.

Roper Technologies stock gained over 25% in the last 12 months. Investors can gain exposure to the stock via Invesco Water Resources ETF PHO and First Trust Water ETF FIW.

Is Roper Tech A Good Stock To Buy?

Wall Street analysts view Roper Techs ROP on the whole as a Outperform, given the history of coverage over the past three months. Christopher Glynn from Oppenheimer in Roper Techs is the most optimistic, expecting a 12.07% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Roper Techs fell 2.79%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 14.35% over the past year.

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Price Action: ROP shares closed higher by 0.45% at $540.41 at last check on Thursday.

Image: Shutterstock/ whiteMocca