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Roper Q4 Earnings Top Estimates, Application Software Sales Up Y/Y
ROPRoper(ROP) ZACKS·2025-01-30 16:25

Core Insights - Roper Technologies reported fourth-quarter 2024 adjusted earnings of 4.81pershare,exceedingtheZacksConsensusEstimateof4.81 per share, exceeding the Zacks Consensus Estimate of 4.72, marking a 10% year-over-year increase [1] - The company's net revenues for the quarter reached 1.88billion,surpassingtheconsensusestimateof1.88 billion, surpassing the consensus estimate of 1.83 billion, and reflecting a 16% year-over-year growth [1] - For the full year 2024, Roper's net revenues totaled 7.04billion,a147.04 billion, a 14% increase from the previous year, with adjusted earnings of 18.31 per share, also up 10% year over year [2] Segment Performance - The Application Software segment generated revenues of 1.06billion,accountingfor56.31.06 billion, accounting for 56.3% of the quarterly total, with a year-over-year increase of 24.1% and organic revenue growth of 6% [3] - Network Software & Systems reported revenues of 373.5 million, representing 19.9% of the quarterly top line, with a 3% year-over-year growth and organic revenue increase of 3% [4] - The Technology Enabled Products segment achieved revenues of 446.7million,makingup23.8446.7 million, making up 23.8% of the quarterly total, with a 12% year-over-year increase and organic revenue growth of 12% [5] Financial Metrics - Roper's cost of sales rose by 21.8% year over year to 594.8 million, while gross profit increased by 14% to approximately 1.28billion,resultinginagrossmargindecreaseto68.31.28 billion, resulting in a gross margin decrease to 68.3% from 69.7% [6] - Selling, general and administrative expenses increased by 14.4% year over year to 757.6 million, with adjusted EBITDA growing by 13% to 744million,leadingtoamargindecreaseof120basispointsto39.6744 million, leading to a margin decrease of 120 basis points to 39.6% [6] - The company had cash and cash equivalents of 188.2 million at the end of Q4 2024, down from 214.3millionattheendofDecember2023,whilelong−termdebtincreasedto214.3 million at the end of December 2023, while long-term debt increased to 6.58 billion from 5.83billion[7]ShareholderReturns−In2024,Roperdistributed5.83 billion [7] Shareholder Returns - In 2024, Roper distributed 321.9 million in dividends to shareholders, reflecting a 10.9% year-over-year increase [8] Future Outlook - For 2025, Roper anticipates adjusted earnings per share from continuing operations to be in the range of 19.75−19.75-20.00, with total revenues expected to increase by more than 10% and organic revenues projected to grow by 6-7% [10] - For Q1 2025, the company expects adjusted earnings to be between 4.70and4.70 and 4.74 per share [10]