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Roper Trims Profit Outlook on Deal Costs; Shares Slide

Despite a Q3 EPS beat with 14% revenue growth, the company set a cautious Q4 target below forecasts.

Overview

  • Full-year adjusted EPS guidance is now $19.90–$19.95, reflecting roughly 10 cents of dilution from recent acquisitions.
  • Fourth-quarter adjusted EPS is guided to $5.11–$5.16 versus a $5.25 LSEG consensus, including an estimated 5-cent impact from small deals.
  • Q3 adjusted EPS came in at $5.14, topping estimates, on revenue of about $2.02 billion that rose 14% year over year with 6% organic growth.
  • Roper deployed $1.3 billion on acquisitions in Q3, maintains more than $5 billion of capacity for additional M&A, and authorized a new $3 billion buyback.
  • Operational headwinds included Neptune deployment delays and a copper tariff–related disruption, plus a September slowdown at Deltek linked to the government shutdown, and the stock fell about 7%.