Roper Technologies, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Roper Technologies, Inc. (NASDAQ:ROP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Roper Technologies reported US$6.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$12.89 beat expectations, being 6.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Roper Technologies
Taking into account the latest results, the most recent consensus for Roper Technologies from 14 analysts is for revenues of US$6.88b in 2024. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$12.97, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.66b and earnings per share (EPS) of US$13.17 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$586, implying that the uplift in revenue is not expected to greatly contribute to Roper Technologies's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Roper Technologies, with the most bullish analyst valuing it at US$679 and the most bearish at US$454 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Roper Technologies' growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Roper Technologies is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at US$586, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Roper Technologies going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether Roper Technologies' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
