Sarasota, Florida-based Roper Technologies, Inc. (ROP) designs and develops software, and technology enabled products and solutions. With a market cap of $59.6 billion, the company offers industrial controls, fluid handling, pumps, medical and scientific devices, analytical instrumentation products, radio frequency identification (RFID) communication technology, and software solutions. The industrial equipment maker is expected to announce its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 23.

Ahead of the event, analysts expect ROP to report a profit of $4.53 per share on a diluted basis, up 4.9% from $4.32 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, the company witnessed an improving demand for its enterprise software.

For the full year, analysts expect ROP to report EPS of $18.16, up 8.7% from $16.71 in fiscal 2023. Its EPS is expected to rise 8.4% year over year to $19.68 in fiscal 2025. 

ROP stock has underperformed the S&P 500’s ($SPX) 33.1% gains over the past 52 weeks, with shares up 13.2% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 34.4% gains over the same time frame. 

ROP’s performance is hindered by rising costs, amortization expenses from acquired assets, and ongoing supply-chain challenges. Additionally, high debt levels also pose a risk to the company's future prospects.

On Jul. 24, ROP shares closed down more than 7% after reporting its Q2 results. Its adjusted EPS of $4.48 exceeded Wall Street expectations of $4.46. The company’s revenue was $1.7 billion, meeting Wall Street forecasts. For Q3, ROP expects its adjusted EPS to be between $4.50 and $4.54. The company expects full-year adjusted EPS to be between $18.10 and $18.25.

Analysts’ consensus opinion on ROP stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, eight advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and five give a “Hold.” ROP’s average analyst price target is $598.92, indicating a potential upside of 9.2% from the current levels.

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