Roper Gears Up to Report Q1 Earnings: What's in the Cards?

Roper Technologies, Inc. ROP is scheduled to release first-quarter 2025 results on April 28, before market open.

The Zacks Consensus Estimate for Roper’s first-quarter earnings has remained steady 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 1.5%.

The Zacks Consensus Estimate for the company’s revenues is pegged at $1.88 billion, indicating growth of 11.7% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $4.73 per share, indicating 7.3% growth from the year-ago quarter’s number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 first-quarter performance is expected to have benefited from strength across its Deltek, Vertafore, PowerPlan and Aderant businesses. The growing adoption of 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, expanding GenAI functionality and increased enterprise bookings.

The Vertafore business is anticipated to have performed well, driven by excellent enterprise delivery capabilities to the largest customers in the 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 16% year over year to $1.04 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. Solid demand for Gen AI-powered solutions within the ConstructConnect business is also anticipated to have benefited the segment. Our estimate for the Network Software segment’s revenues is pegged at $377.8 million, indicating a year-over-year increase of 1.8%.

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 meters 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 10.4% to $458.2 million from the year-ago figure.

Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. In December 2024, the company completed the acquisition of Trucker Tools LLC, which strengthened its real-time GPS tracking and load optimization features on the DAT One platform. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector.

We expect the company’s total revenues to be $1.87 billion, indicating an increase of 11.5% year over year. Adjusted earnings are expected to be $4.72 per share, indicating a 7.1% 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 $791.3 million for the first quarter, indicating an increase of 13.1% 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

Our proven model predicts 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 the case here, as elaborated below. 

Earnings ESP: ROP has an Earnings ESP of +0.24% as the Most Accurate Estimate is pegged at $4.74 per share, which is higher than the Zacks Consensus Estimate of $4.73. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: ROP currently 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.

Illinois Tool Works Inc. ITW has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter 2025 results on April 30. Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

AptarGroup, Inc. ATR has an Earnings ESP of +2.59% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2025 results on May 1.

ATR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.3%.

Crane Company CR has an Earnings ESP of +1.68% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2025 results on April 28.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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