01:36 PM EDT, 07/25/2024 (MT Newswires) -- Roper Technologies ( ROP ) underwhelmed investors with its "modest" Q2 earnings beat and the manufacturing headwind at its Neptune business, RBC Capital Markets said in a note Wednesday.

The firm said the software company's Q2 results were mostly in-line, with adjusted earnings per share of $4.48 compared with the consensus of $4.46 and the higher Application Software and Network Software margins partially offsetting "a modest shortfall" at Technology Enabled Products.

RBC said the "biggest surprise" was that the manufacturing glitch at Roper's Neptune business weighed on the company's Q2 results and overshadowed the 24% free cash flow growth year-on-year.

"The Neptune manufacturing production issue sounded benign to us and has been addressed/resolved," RBC said. "Much of the lost sales should be recouped in H2."

The firm cut Roper's price target to $674 from $685 and maintained its outperform rating on the stock.

Roper's shares were 3% up in recent trading.

Price: 548.14, Change: +16.17, Percent Change: +3.04