Roper forecasts weak 2024 profit on strained enterprise spending

Roper Technologies

31/01/2024 13:16

Jan 31 (Reuters) - Software firm Roper Technologies
 ROP.O  on Wednesday forecast full-year 2024 earnings below Wall
Street estimates, due to weaker spending by its target
industries. 
    Shares of the Sarasota, Florida-based company, which rose
about 26% in 2023, was down 3.3% in premarket trading.
    The holding company, which operates through subsidiaries
like DAP Technologies, Roper Pump and Vertafore, among others,
was hit by slower-than-expected growth as companies cut back on
IT spending in the face of an uncertain economy.
    Although global IT spend is expected to regain momentum in
2024, the spending environment is slightly constrained as many
companies are hesitant to sign new contracts and commit to
long-term initiatives, according to research firm Gartner. 
    Roper expects adjusted profit between $17.85 and $18.15 per
share in 2024, which was below analysts' estimates of $18.33,
according to LSEG data. 
    The forecast includes the impact of its recent acquisition
of Procare, which is expected to close in the first quarter of
2024, the company said. 
    Roper, which has been trying grow through a series of
acquisitions over past years, announced earlier this month it
would buy child-care management software firm Procare Solutions
for $1.75 billion. 
    The company's revenue for the fourth quarter rose 13% to
$1.61 billion, above estimates of $1.58 billion, helped by a 15%
rise in revenue from its Application Software segment which
offers services to healthcare and finance industries. 
   It also reported an adjusted profit of $4.37 per share in the
reported quarter, above estimates of $4.34 per share according
to LSEG data.     

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Tasim Zahid and Shailesh Kuber)