Shares of technology firm Roper Technologies (ROP) closed 1% higher at $496.63 on Friday after the company reported strong second-quarter 2021 financial results. Based out of Florida, Roper produces and supplies engineered products to customers in more than 100 nations.
Adjusted earnings per share (EPS) grew 28% year-over-year to $3.76, beating the Street’s estimate of $3.67. Quarterly revenue increased 22% to $1.59 billion, marginally surpassing analysts’ expectations of $1.58 billion.
The President and CEO of Roper, Neil Hunn, said, “Our outstanding first-half performance was driven by accelerating recurring revenue growth, broadly improving end-market conditions and ongoing benefits from the enhanced quality of our portfolio. Given the positive momentum across our businesses, we are increasing our full-year 2021 guidance and expect double-digit organic revenue growth for the second half of the year.”
For 2021, the company has raised the adjusted EPS guidance to $15 to $15.20 from the previous outlook of $14.75 to $15. Furthermore, it expects to report adjusted EPS of $3.80 to $3.84 in the third quarter. (See Roper stock chart on TipRanks)
Last week, Wells Fargo analyst Allison Poliniak reiterated a Buy rating on the stock and raised the price target to $540 from $490 (8.7% upside potential). The analyst said, “Roper remains the low-risk play, given the company’s 75% exposure to recurring revenue/software.”
Overall, the stock has a Moderate Buy consensus based on 6 Buys, 1 Hold and 1 Sell. The average Roper Technologies price target of $504.38 implies a 1.6% upside potential to current levels. The company’s shares have gained 18.1% over the past year.
The post Roper Rises 1% on Excellent Q2 Results, Ups Guidance appeared first on TipRanks Financial Blog.