Roper Technologies, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Roper Technologies, Inc. (NASDAQ:ROP) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to US$514 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of US$1.7b were in line with what the analysts predicted, Roper Technologies surprised by delivering a statutory profit of US$3.54 per share, a notable 16% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Roper Technologies

Taking into account the latest results, the current consensus from Roper Technologies' 14 analysts is for revenues of US$6.92b in 2024. This would reflect a meaningful 8.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 5.0% to US$13.01 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$6.89b and earnings per share (EPS) of US$12.83 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$600, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Roper Technologies analyst has a price target of US$690 per share, while the most pessimistic values it at US$480. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Roper Technologies shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$600, 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. We have forecasts for Roper Technologies going out to 2026, and you can see them free on our platform here.

Even so, be aware that Roper Technologies is showing 1 warning sign in our investment analysis , you should know about...

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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.