Roper Technologies, Inc. ROP is scheduled to release fourth-quarter 2024 results on Jan. 30, before market open.

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The Zacks Consensus Estimate for Roper’s fourth-quarter earnings has increased 0.9% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.2%.

The Zacks Consensus Estimate for the company’s revenues is pegged at $1.83 billion, indicating growth of 13.6% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $4.76 per share, indicating 8.9% growth from the year-ago quarter’s number.

Let’s see how things have shaped up for Roper this earnings season.

Factors to Note Ahead of ROP’s Results

ROP’s Application Software segment’s fourth-quarter performance is expected to have benefited from strength across its Deltek, Strata, PowerPlan and Aderant businesses. The growing adoption of software as a service (SaaS) solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth. The Deltek business is likely to have gained from the solid demand for SaaS solutions in the GovCon sectors and expanding GenAI functionality.

The Strata business is anticipated to have performed well, driven by strong demand for its leading decision support and financial planning solutions in the healthcare market. Strong customer retention and adoption of new SaaS solutions are expected to have driven the PowerPlan business. We anticipate the segment’s revenues to increase 18% year over year to $1 billion.

Roper’s Network Software segment is expected to have benefited from strong momentum across alternate site healthcare businesses, driven by increased demand for software solutions at MHA. Our estimate for the Network Software segment’s revenues is pegged at $376.1 million, indicating a year-over-year increase of 3.6%.

The Technology Enabled Products segment’s performance is expected to have been driven by strength in the Neptune business due to continued demand for ultrasonic metes and increasing adoption of meter data management software. Solid performance of the Verathon business, due to strength across single-use BFlex & GlideScope offerings and continued BladderScan demand, is likely to have aided the segment in the quarter. We expect the segment’s revenues to increase 9.8% to $438.1 million from the year-ago figure.

Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector. Also, the buyout of Syntellis Performance Solutions, in August 2023, expanded its SaaS solutions portfolio.

We expect the company’s total revenues to be $1.8 billion, indicating an increase of 12.8% year over year. Adjusted earnings are expected to be $4.70 per share, indicating a 7.5% increase from the year-ago quarter’s number.

However, escalating operating costs, owing to higher costs related to the amortization of acquired assets and increased selling, general and administrative expenses, are likely to have impacted ROP’s margin performance. We expect general and administrative expenses to be $731.7 million for the fourth quarter, indicating an increase of 10.5% year over year.

Roper has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.

Earnings Whispers for ROP

Our proven model does not conclusively predict an earnings beat for ROP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: ROP has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $4.76. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ROP presently carries a Zacks Rank of 3.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

EnerSys ENS has an Earnings ESP of +7.24% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release third-quarter fiscal 2025 (ended December 2024) results on Feb. 5. EnerSys’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 1.7%.

Dover Corporation DOV has an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2024 results on Jan. 30.

Dover’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.

AptarGroup, Inc. ATR has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2024 results on Feb. 6.

AptarGroup’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.1%.

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