ROP Earnings Prediction
The chart below shows how ROP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ROP sees a -0.01% change in stock price 10 days leading up to the earnings, and a +0.90% change 10 days following the report. On the earnings day itself, the stock moves by -0.57%. This data can give you a slight idea of what to expect for the next quarter's release.
ROP Key Earning Data
ROP Earnings Analysis
Positive
Earnings Beat Expectations: Roper Technologies, Inc. beats earnings expectations with reported EPS of $4.78, exceeding expectations of $4.74.
Revenue Growth Performance: Total revenue grew 12% in Q1, with organic revenue increasing by 5%, indicating strong performance.
Cash Flow Improvement: Cash flow increased by 12% over the last 12 months, showcasing effective cash management.
Acquisition Revenue and EBITDA: The acquisition of CentralReach was successfully completed, expected to deliver $175 million in revenue and $75 million in EBITDA for the TTM period ending June 2026.
Revenue Guidance Increase: Raising full year total revenue guidance due to a solid start to the year and the completion of the CentralReach acquisition.
Available Capital Deployment: Roper has over $5 billion of available capital for deployment over the next 12 months, indicating strong financial positioning.
Resilient Business Model: The business model is resilient, with over 85% of revenues generated in the U.S. and 95% gross retention rate, demonstrating customer loyalty.
Application Software Performance: The Application Software segment saw a revenue growth of 19% and organic growth of 6%, with EBITDA margins improving by 110 basis points.
Market Leadership and Acquisition: Verathon and Neptune showed strong performance, with Verathon maintaining market leadership and Neptune completing a strategic acquisition to enhance customer value.
Future Growth Prospects: The company remains optimistic about future growth, with a healthy pipeline of acquisition opportunities and a disciplined approach to capital deployment.
Negative
Organic Revenue Growth Concerns: Organic revenue growth of 5% was in line with expectations but indicates a slowdown compared to previous quarters, raising concerns about future growth potential.
Free Cash Flow Decline: Free cash flow decreased by 1% year-over-year, which is concerning given the legal settlement of $24 million that impacted cash flow margins.
EBITDA Margin Decline: Reported EBITDA margin decreased by 90 basis points compared to the prior year, indicating potential pressure on profitability despite revenue growth.
Network Software Revenue Challenges: The Network Software segment only saw 1% organic revenue growth, which is significantly lower than other segments and suggests challenges in this area.
Acquisition Impact on Earnings: The acquisition of CentralReach, while seen as a strategic move, comes with a dilution of $0.15 to earnings, which could impact short-term profitability.
Macroeconomic Risks to Growth: The company acknowledged a difficult macroeconomic environment, which may pose risks to future performance and growth, particularly in the Network Software segment.
ROP FAQs
How does ROP typically perform around its earnings report dates?
ROP's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.01% change leading up to the report and a +0.90% change in the 10 days following the release.
Is Roper Technologies Inc (ROP) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ROP Earning Call Sentiment
Roper Technologies, Inc. (NASDAQ:ROP) Q1 2025 Earnings Call Transcript

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