Software firm Roper lifts annual forecasts above estimates on strong demand
Oct 23 (Reuters) -Roper Technologies ROP.O raised its full-year profit and revenue forecasts above Wall Street estimates on Wednesday on improved demand for its enterprise software services that cater to industries including healthcare and legal.
The results are a positive sign for the company that had been struggling with weak spending on its diverse software portfolio in a tough economy, leading to delayed contract renewals.
Roper in August agreed to buy Transact Campus for $1.5 billion to strengthen its business that serves higher education institutions and healthcare facilities, in a bid to improve its fortunes.
The company updated the lower end of its annual adjusted profit forecast to between $18.21 and $18.25 per share, compared with the prior viewof $18.10 to$18.25.
The mid-point of the revisedforecast is above analysts' averageestimate of $18.21, according to data compiled by LSEG.
The company expects its full-year revenue growth to be more than 13%, compared with estimates of 11.9%.
It seesits fourth-quarter adjusted profit in the range of $4.70 to $4.74 per share, the mid-point of which was below estimates of $4.77.
Revenue from its application software business, Roper's biggest, was $984.4 million for the quarter ended Sept. 30, beating estimates of $950.5 million.
The company reported a revenue of $1.76 billion in the third quarter, above estimates of $1.73 billion.
Its quarterly adjusted profit came in at $4.62 per share, compared with estimates of $4.53.
Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas
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