Analyst Note
| Joshua Aguilar |Despite the headline sales miss, Roper’s fourth-quarter 2020 results were relatively in line and even slightly ahead of our expectations on both the top and bottom lines. Fourth-quarter sales were just shy of $1.51 billion, and adjusted EPS came in at $3.56 against our expectations of $1.47 billion and adjusted EPS of $3.43. While not our favorite metric, yet useful given purchase accounting dynamics, adjusted EBITDA margins came in at 36.6%, or about 10 basis points higher than we were expecting for the quarter, implying incremental margins of just under 32%.