Roper forecasts profit above estimates as IT spend on application software picks up

(Reuters) - Software maker Roper Technologies forecast fourth-quarter profit above Wall Street targets on Wednesday, betting that clients will prioritize spending on its suite of products built for niche industries like healthcare, finance and logistics.

On an adjusted basis, the company expects its current-quarter profit to range between $4.28 and $4.32 per share, the mid-point of which is above analysts' average estimate of $4.28, according to LSEG data.

Roper features a host of enterprise software segments such as Strata, its financial analysis and performance platform catered to the healthcare industry, and Aderant, a business management software provider targeted towards law firms.

The Sarasota, Florida-based company reported an adjusted profit of $4.32 per share in the third quarter, beating analysts' average estimate of $4.22 per share.

Global IT spending is expected to grow 4.3% in 2023 from a year earlier, according to research firm Gartner, helping technology companies like Roper with demand across diverse industries.

Revenue from the application software business - Roper's biggest - rose nearly 25% from a year earlier to $803.4 million in the quarter ended Sept. 30.

Riding on hopes of higher client spending on application software, the company also raised its full-year forecast for per-share adjusted earnings to the range of $16.62 to $16.66, compared with its prior expectations of $16.36 to $16.50 per share.

Its total third-quarter revenue was up 16% year-on-year at $1.56 billion, compared with analysts' estimates of $1.55 billion.

In August, Roper completed its $1.25 billion acquisition of performance management software provider Syntellis Performance Solutions, enhancing its capacity to deliver cloud-based solutions.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shweta Agarwal)