Yahoo Finance Roper (ROP) Q1 Earnings Surpass Estimates, Revenues Rise Y/Y
Roper Technologies’ ROP first-quarter 2024 adjusted earnings of $4.41 per share surpassed the Zacks Consensus Estimate of $4.34. On a year-over-year basis, earnings increased 13.1%.
Roper’s net revenues of $1.68 billion beat the consensus estimate of $1.65 million. The top line increased 14% year over year. Organic sales in the quarter increased 8%, owing to strength across each of the three segments. Acquisitions boosted sales by 6%.
Segmental Performance
Roper has divested its Process Technologies segment and industrial units of the Measurement & Analytical Solutions segment. Beginning in the second quarter of 2022, the company started reporting under three segments, which were Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $895.2 million, representing 53.3% of the quarter’s top line. Our estimate for the quarter was $890.8 million. On a year-over-year basis, the segment’s revenues increased 18%. Organic sales in the quarter increased 6%.
Network Software & Systems generated revenues of $370.8 million, accounting for 22.1% of first-quarter revenues. Our estimate for the quarter was $359.3 million. Segmental revenues grew 5% year over year. Organic sales in the quarter increased 4%.
The Technology Enabled Products segment generated revenues of $414.7 million, accounting for 24.6% of the quarter’s revenues. Our estimate for the quarter was $384.6 million. Sales were up 17% year over year. Organic sales in the quarter grew 17%.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. price-consensus-eps-surprise-chart | Roper Technologies, Inc. Quote
Margin Profile
In the reported quarter, Roper’s cost of sales increased 10.8% year over year to $499.7 million. Gross profit in the quarter declined 13.7% to $1.1 billion while the gross margin decreased to 69.3% from 70.3% in the year-ago quarter.
Selling, general and administrative expenses increased 13.3% year over year to $699.7 million. Adjusted EBITDA was $676 million, reflecting year-over-year growth of 16%. The margin increased 60 basis points to 40.2%. Interest expenses decreased 6.9% year over year to $42.3 million.
Balance Sheet & Cash Flow
Exiting the first quarter of 2024, Roper had cash and cash equivalents of $198.4 million compared with $214.3 million at the end of December 2023. Long-term debt (net of current portion) was $7.2 billion compared with $5.8 million at the end of the fourth quarter of 2023.
Roper generated net cash of $531.5 million from operating activities in the first three months of 2024, reflecting an increase of 14.6% from the year-ago level. Capital expenditure totaled $9.3 million compared with $9.8 million in the year-ago quarter.
In the first three months of 2024, ROP rewarded its shareholders with a dividend payment of $80.5 million, up 11.3% year over year.
Outlook
ROP, currently carrying a Zacks Rank #3 (Hold), predicts adjusted earnings per share (EPS) from continuing operations of $18.05-$18.25 compared with $17.85-$18.15 stated earlier. Total revenues are expected to increase 12% compared with 11-12% mentioned earlier. Organic revenues are anticipated to increase 6% in 2024 from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the second quarter, Roper anticipates adjusted EPS to be $4.42 - $4.46.
Performances of Other Companies
Aehr Test Systems AEHR reported a quarterly loss of 3 cents per share compared with the Zacks Consensus Estimate of a loss of 4 cents per share in the fiscal third quarter (ended February 2024). This reflects a decline from earnings of $0.16 per share a year ago.
Aehr Test Systems posted revenues of $7.56 million for the quarter, missing the Zacks Consensus Estimate by 0.49%. This compares with year-ago revenues of $17.21 million.
A. O. Smith Corporation’s AOS first-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.
Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.
IDEX Corporation’s IEX first-quarter 2024 adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.
In the quarter under review, IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.
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