Roper Reports Strong Q4; Well Positioned Relative to Other Multi-Industry Firms

We don’t expect to materially alter our $530 fair value estimate following wide-moat-rated Roper Technologies’ fourth-quarter results, although we plan to re-evaluate after the company releases its 10-K filing. Fourth-quarter revenue of $1.43 billion readily moved past our expectation of $1.35 billion, and diluted EPS on a continuing operations basis of $3.92 exceeded our $3.82 estimate. That was offset by slightly lower organic revenue guidance than we were baking in before the announcement (5%-6% versus our expectation just south of 7%). Our long-term thesis is intact, and we think recent dynamics mostly affect the timing of cash flows, which doesn’t create meaningful swings in intrinsic valuation.