Roper Earnings: Strong Organic Growth in 2023; Expected to Moderate Slightly in 2024

Wide-moat-rated Roper Technologies posted solid fourth-quarter results, led by impressive revenue growth in its application software and technology-enabled products segments. Fourth-quarter revenue of $1.61 billion and adjusted diluted EPS of $4.37 both beat consensus estimates. Guidance for full-year 2024 was weak, however, and called for modest mid-single-digit organic growth, which is a step down compared with the trailing three years. We maintain our fair value estimate of $560 per share, as the time value of money effects were offset by minor changes to our forecast.