Roper Technologies forecasts Q3 profit below estimates on weak enterprise spend (updated)

Roper Technologies

24/07/2024 15:15

(Adds share movement)
       July 24 (Reuters) - Software firm Roper Technologies
 ROP.O  forecast third-quarter profit below estimates on
Wednesday, owing to weak spending and delayed contract renewals
by its target industries.
    An uncertain economy and high borrowing costs are forcing
businesses to spend cautiously, delaying contract signing and
renewals by clients and impacting firms such as Roper.
    Shares of the Sarasota, Florida-based company fell 8.1% and
were on track for its worst day in four years.
    The company forecast third-quarter adjusted diluted earnings
per share in the range of $4.50 to $4.54, the mid-point of which
was below analysts' average estimate of $4.63 per share,
according to LSEG data.
    Roper runs businesses that design and develop vertical
software and technology-enabled products for a variety of
markets, including healthcare, law and data analytics. 
    It operates in three segments - application software,
network software and the technology-enabled products segment.
All its segments reported revenue below analysts' average
estimates.
    Revenue from the application software business, Roper's
biggest, was $931.8 million for the quarter ended June 30, below
analysts' estimate of $933.6 million.
    The company reported revenue of $1.72 billion in the second
quarter, missing analysts' average estimate of $1.73 billion.
    It also reported an adjusted profit of $4.48 per share,
missing an estimate of $4.46 per share.
    However, hoping for a recovery in demand for enterprise
software, the company updated the lower end of its full-year
adjusted diluted earnings-per-share forecast for 2024 to between
$18.10 and $18.25, compared to the previous forecast of $18.05
to $18.25.

 (Reporting by Priyanka.G in Bengaluru; Editing by Pooja Desai)
 ((Priyanka.G@thomsonreuters.com;))