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Rollins (ROL) Q1 Earnings Beat Estimates, Increase Y/Y

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Rollins, Inc. (ROL - Free Report) reported impressive first-quarter 2023 results, which beat the Zacks Consensus Estimate on both counts.

Adjusted earnings of 18 cents per share beat the Zacks Consensus Estimate by 5.9% and increased 20% year over year. The bottom line surpassed our estimate by 12.5%.

Revenues of $658 million beat the consensus mark by 2.8% and improved 11.4% year over year. The top line surpassed our estimate by 2.9%. Organic revenues of $641.6 million increased 9.2% year over year.

The stock gained 1.7% in yesterday’s after-hours trading in response to the better-than-expected results. Rollins’ shares have gained 14.2% in the past year, outperforming the 10.9% rally of the industry it belongs to.

Rollins, Inc. Price, Consensus and EPS Surprise

 

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Other Quarterly Details

Adjusted EBITDA of $139.5 million increased 18.4% year over year. The adjusted EBITDA margin of 21.2% increased 130 basis points year over year.

Rollins exited the quarter with a cash and cash equivalents balance of $112.5 million compared with the prior quarter’s $95.3 million. Long-term debt at the end of the quarter was $62.4 million compared with $39.9 million at the end of the prior quarter.

The company generated $100.8 million of cash from operating activities in the quarter and capital expenditure was $7.6 million. Free cash flow was $93.1 million.

Currently, Rollins carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots of Some Service Providers

Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.

OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Equifax (EFX - Free Report) reported a beat on both counts in its first-quarter 2023 results.

EFX’s adjusted earnings were $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.

ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.

MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.


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