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 -0.74% change in stock price 10 days leading up to the earnings, and a +1.20% change 10 days following the report. On the earnings day itself, the stock moves by -0.19%. This data can give you a slight idea of what to expect for the next quarter's release.
ROP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.88B
16.34%
6.38%
Gross Margin
68.31%
-2.05%
-1.33%
Operating Margin
27.95%
-2.55%
-0.68%
Net Margin
24.63%
5.26%
18.13%
EPS
4.28
18.56%
25.88%
No Data Available
ROP Earnings Analysis
Roper Technologies Inc Corporation (ROP.O) Earnings Conference Call
Positive
Record Revenue Milestone: Revenue grew 14% in 2024, reaching over $7 billion, marking a new milestone for Roper Technologies.
Record Free Cash Flow Growth: Free cash flow increased by 16% to over $2 billion for the first time in history, with free cash flow margins at 32%.
Enterprise Software Growth: Enterprise software bookings accelerated to double-digit growth, contributing to a recurring revenue base of $460 million expected to grow in the high single digits in 2025.
Application Software Revenue Growth: The Application Software segment achieved 24% revenue growth, with organic recurring revenue growing by 8% in the quarter, driven by strong SaaS growth.
Acquisition Potential: Roper Technologies has over $5 billion in acquisition firepower, positioning the company well for attractive M&A opportunities in a favorable market.
Negative
EBITDA Margin Decline: Core EBITDA margin decreased by 30 basis points compared to the prior year, indicating a decline in profitability despite revenue growth.
Network Software Revenue Challenges: Organic revenue growth in the Network Software segment was only 3%, reflecting challenges in the freight matching business and overall market conditions.
Restructuring Impact on Profitability: The restructuring actions taken in some software businesses resulted in a $9 million charge, which could impact future profitability and operational efficiency.
TEP Segment Backlog Decline: The TEP segment's backlog was down approximately 30% year-over-year, suggesting potential future revenue challenges as demand may not be keeping pace with previous levels.
M&A Market Challenges: Despite a strong overall performance, the company faced a quieter M&A market in 2024 than initially expected, limiting growth opportunities through acquisitions.
ROP FAQs
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ROP Earning Call Sentiment
Earnings call transcript: Roper Technologies beats Q4 2024 expectations
ROP.O
0.2%Positive
The earnings call summary shows strong financial performance, with record revenue and free cash flow, and increased guidance. The acquisition of Transact Campus and a robust M&A strategy further bolster the outlook. While there are some concerns about restructuring costs and potential policy impacts, the Q&A session did not reveal significant negative sentiments. The company's competitive position and growth outlook remain strong, suggesting a positive stock price reaction in the short term.
