Why Roper Technologies Stock Is Trading Higher: 'M&A Firepower'

Roper Technologies Inc ROP reported first-quarter FY23 revenue growth of 15% year-over-year to $1.47 billion, which topped the consensus of $1.44 billion. Organic revenue grew 8% Y/Y.
Adjusted EPS of $3.90 (+19.3% Y/Y) beat the consensus of $3.85.
Sales by segments: Application Software $761.4 million (+21.2% Y/Y), Network Software $354.5 million (+4.7% Y/Y), Technology Enabled Products $353.8 million (+13% Y/Y).
Gross margin decreased by 80 basis points at 69.3%.
Roper held $1.18 billion in cash and equivalents by the end of the quarter.
"With a combination of significant M&A firepower and a large universe of high-quality acquisition opportunities, we remain well positioned to continue executing our disciplined and process-driven approach to capital deployment," said CEO Neil Hunn.
FY23 Outlook: Roper now expects full-year 2023 adjusted earnings of $16.10-$16.30, compared to the previous guidance of $15.90-$16.20.
For the second quarter of 2023, the company expects adjusted earnings of $3.96-$4.
ROP Price Action: Roper Technologies shares traded higher by 3.18% at $444.77 on the last check Thursday.