Yahoo Finance Results: Roper Technologies, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
The yearly results for Roper Technologies, Inc. (NYSE:ROP) were released last week, making it a good time to revisit its performance. Revenues were US$5.4b, approximately in line with what analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$16.82, an impressive 52% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Roper Technologies
Taking into account the latest results, the most recent consensus for Roper Technologies from nine analysts is for revenues of US$5.76b in 2020, which is a satisfactory 7.4% increase on its sales over the past 12 months. Statutory earnings per share are expected to plummet 39% to US$10.45 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of US$5.76b and earnings per share (EPS) of US$10.71 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at US$399, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Roper Technologies analyst has a price target of US$450 per share, while the most pessimistic values it at US$308. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's pretty clear that analysts expect Roper Technologies's revenue growth will slow down substantially, with revenues next year expected to grow 7.4%, compared to a historical growth rate of 10% over the past five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkRoper Technologies will grow faster than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Roper Technologies. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$399, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for Roper Technologies going out to 2024, and you can see them free on our platform here.
You can also see whether Roper Technologies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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