Roper (ROP) Q2 Earnings Beat, Application Software Sales Up Y/Y

Core Viewpoint - Roper Technologies reported strong second-quarter 2024 results with adjusted earnings per share of $4.48, exceeding estimates and reflecting a 9% year-over-year increase [1] Financial Performance - Net revenues for Roper reached $1,716.8 million, a 12% increase year-over-year, although it fell short of the consensus estimate of $1,724 million [10] - Adjusted EBITDA grew 13% year-over-year to $695 million, with a margin increase of 20 basis points to 40.5% [6] - The cost of sales rose 12.8% year-over-year to $523.5 million, while gross profit increased 11.8% to approximately $1.19 billion, resulting in a slight decrease in gross margin to 69.5% from 69.7% [5] Segment Performance - Application Software segment revenues totaled $931.8 million, accounting for 54.3% of total revenues, with a year-over-year increase of 21% and organic revenue growth of 5% [2] - Network Software & Systems generated revenues of $364.2 million, representing 21.2% of total revenues, with a 2% year-over-year growth [3] - Technology Enabled Products segment revenues were $420.8 million, making up 24.5% of total revenues, with a 4% year-over-year increase [4] Shareholder Returns - Roper rewarded shareholders with a dividend payment of $160.6 million in the first half of 2024, reflecting a 10.9% increase year-over-year [7] Outlook - For the third quarter, Roper anticipates adjusted earnings per share to be in the range of $4.50-$4.54, an increase from previous projections [16] - For the full year 2024, Roper expects adjusted earnings per share from continuing operations to be between $18.10-$18.25, with total revenues projected to increase by 12% [20]