Roper Technologies Inc (NASDAQ:ROP) stock rose 0.0042% (As on October 24, 11:23:17 AM UTC-4, Source: Google Finance) after the company cut its annual profit forecast, as it expects higher costs related to acquisitions in the third quarter. The company has grown largely through acquisitions, establishing itself as a provider of software and automated solutions to a variety of sectors, including healthcare, transportation and education. Roper has more than $5 billion in capital available for merger and acquisitions over the next 12 months. The company said it deployed $1.3 billion for acquisitions in the third quarter, including the acquisition by DAT Freight & Analytics of Convoy Platform, formerly Flexport, and Orchard Software, integrated into Clinisys. These acquisitions are intended to strengthen its presence in the freight and laboratory software sectors. Importantly, all of the businesses continue to accelerate their AI innovation, with promising AI solution pipelines and increasing realization of internal efficiencies.
ROP in the third quarter of FY25 has reported the adjusted earnings per share of $5.14, beating the analysts’ estimates for the adjusted earnings per share of $5.11. The company had reported the adjusted revenue growth of 14 percent to $2.02 billion in the third quarter of FY25, which is inline with the analysts’ estimates for revenue of $2.02 billion. Adjusted EBITDA increased 13% to $810 million. Operating cash flow increased 15% to $870 million and free cash flow increased 17% to $842 million
It now expects adjusted earnings per share between $19.90 and $19.95 for the year, compared with its earlier expectation of $19.90 to $20.05. The forecast assumed about 10 cents of adjusted EPS dilution from quarterly acquisitions. Meanwhile, Roper’s water-metering unit, Neptune, is facing delays in some water utility deployments. The new copper tariff that took effect on August 1 also caused some short-term disruption at Neptune. The company’s Deltek government contracting business saw a slowdown in September as agencies halted activity before the shutdown. The company continues to expect total revenue growth of approximately 13% and now expect organic revenue growth of approximately 6%.
It forecast fourth-quarter adjusted profit to be between $5.11 and $5.16 per share, below analysts’ average estimate of $5.25, according to data compiled by LSEG. This forecast assumes a 5-cent impact from small acquisitions. At the same time, the group announced a new $3bn share buyback program to continue its shareholder return policy.