Roper cuts annual profit forecast as acquisition costs bite

(Reuters) -Software company Roper Technologies cut its annual profit forecast on Thursday, as it expects higher costs related to acquisitions in the third quarter. Shares of the company fell around 4% in premarket trading. The Sarasota, Florida-based company has grown largely through acquisitions, establishing itself as a provider of software and automated solutions to a variety of sectors, including healthcare, transportation and education. Roper now expects adjusted earnings per share between $19.90 and $19.95 for the year, compared with its earlier expectation of $19.90 to $20.05. The forecast assumed about 10 cents of adjusted EPS dilution from quarterly acquisitions. The company said it deployed $1.3 billion for acquisitions in the third quarter. Its DAT Freight & Analytics business unit said in July that it would buy Convoy Platform from Flexport for its advanced automation and freight-matching technology. Roper also acquired Orchard Software during the third quarter. The new addition is being integrated into its Clinisys laboratory software business to strengthen its market position. The company forecast fourth-quarter adjusted profit to be between $5.11 and $5.16 per share, below analysts' average estimate of $5.25. This forecast assumes a 5-cent impact from small acquisitions. Revenue for the third quarter ended September 30 rose 14% to $2.02 billion, which was in-line with analysts' estimates, according to data compiled by LSEG. It reported adjusted EPS of $5.14, beating estimates of $5.11. Roper also unveiled a new $3 billion share repurchase program on Thursday. (Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)

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