Roper Tech Q3 Earnings: 13% Revenue Growth, Higher Cash Flow, Lifts Full-Year Outlook

Roper Technologies Inc ROP reported fiscal third-quarter 2024 revenue growth of 13% year-on-year to $1.77 billion, beating the analyst consensus estimate of $1.73 billion.

• Adjusted EPS of $4.62 beat the analyst consensus estimate of $4.53.
• Gross profit increased to $1.222 billion from $1.096 billion a year ago.
• Operating income increased to $496.6 million from $446.1 million the prior quarter.
• Adjusted EBITDA rose 10% year over year to $717 million, and the margin declined by 100 basis points to 40.7%.
• Operating cash flow for the quarter totaled $755 million, up by 20% Y/Y.
• The company held $269.6 million in cash and equivalents as of Sept. 30.

Also Read: Roper Strengthens Campus Solutions Offering with $1.5B Transact Buyout: Details

Roper Technologies CEO Neil Hunn said the company is increasing its full-year guidance “to the high end of the range,” citing the recurring revenue base.

“During the third quarter, we completed the acquisition of Transact Campus, which has been combined with our CBORD business,” he added.

Outlook: Roper expects fiscal 2024 revenue growth of 13%+ or $6.98 billion (prior ~12%) vs. consensus of $6.91 billion and adjusted EPS of $18.21–$18.25 (prior $18.10–$18.25) vs. $18.21 estimate.

Roper expects adjusted EPS of $4.70–$4.74 for its fourth quarter, compared to the Street view of $4.77.

Mizuho analyst Brett Linzey maintained Roper Techs with a Neutral and raised the price target from $530 to $565.

Price Action: ROP stock is down 0.29% at $550.50 premarket at last check Wednesday.

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