Roper(US:ROP) ZACKSยท2025-04-28 14:50Core Viewpoint - Roper Technologies reported strong financial performance in Q1 2025, with adjusted earnings per share of $4.78, exceeding estimates and reflecting an 8% year-over-year increase. Net revenues reached $1.883 billion, surpassing expectations and showing a 12% increase from the previous year [1]. Financial Performance - Adjusted earnings per share for Q1 2025 were $4.78, beating the Zacks Consensus Estimate of $4.73, and increased by 8% year-over-year [1] - Net revenues totaled $1.883 billion, exceeding the consensus estimate of $1.878 billion, with a year-over-year growth of 12% [1] - Organic revenue growth was 5%, driven by the Application Software segment, while acquisitions contributed an 8% increase in sales [1] Segmental Performance - Application Software: Generated revenues of $1.07 billion, accounting for 56.7% of total revenues, with a 19% year-over-year increase and 6% organic growth [2] - Network Software & Systems: Revenues were $375.9 million, representing 20% of total revenues, with a 1% year-over-year growth and 1% organic growth [3] - Technology Enabled Products: Revenues reached $438.7 million, making up 23.3% of total revenues, with a 6% year-over-year increase and 6% organic growth [4] Margin Profile - Cost of sales increased by 17.9% year-over-year to $589.1 million, while gross profit rose by 9.5% to approximately $1.3 billion, resulting in a gross margin decrease to 68.7% from 70.3% [5] - Selling, general and administrative expenses increased by 9.8% year-over-year to $767.9 million, with adjusted EBITDA growing by 9% to $740 million, leading to a margin decrease of 90 basis points to 39.3% [5] - Interest expenses rose by 18.2% year-over-year to $62.9 million [5] Balance Sheet & Cash Flow - At the end of Q1 2025, cash and cash equivalents were $372.8 million, up from $188.2 million at the end of December 2024, while long-term debt decreased to $6.46 billion from $6.58 billion [6] - Net cash generated from operating activities was $528.7 million, reflecting a 0.5% decrease year-over-year, with capital expenditures totaling $9.5 million [7] - The company paid $88.6 million in dividends to shareholders, marking a 10.1% increase year-over-year [7] Outlook - Roper has raised its 2025 outlook, expecting adjusted earnings per share from continuing operations to be in the range of $19.80-$20.05, up from the previous estimate of $19.75-$20.00 [8] - Total revenues are anticipated to increase by 12%, compared to earlier expectations of over 10%, with organic revenues projected to grow by 6-7% [8] - For Q2 2025, adjusted earnings are expected to be between $4.80 and $4.84 per share [9]