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Rollins' (ROL) Q2 Earnings Meet Estimates, Increase Y/Y

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Rollins, Inc.’s (ROL - Free Report) first-quarter 2024 earnings met the Zacks Consensus Estimate but revenues beat the same.

Adjusted earnings of 27 cents per share increased 17.4% year over year. Revenues of $891.9 million beat the consensus mark by a slight margin and improved 8.7% year over year. Organic revenues of $877.8 million increased 7.7% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.

Rollins’ shares have gained 11.5% in the past year, underperforming the 14.1% 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

Quarter Details

Residential revenues increased 6.3% year over year to $408.4 million and beat our estimate of $401.9 million. Commercial revenues increased 9.9% year over year to $287.8 million and surpassed our estimate of $283.7 million. Termite and ancillary revenues increased 11.8% year over year to $186 million and missed our estimate of $187.7 million.

Adjusted EBITDA of $210 million increased 15.3% year over year. This compares to our expectation of an adjusted EBITDA of $206.4 million, up 14.6% year over year. Adjusted EBITDA margin of 23.6% increased 140 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 23.4%, up 110 bps year over year.

Rollins exited the quarter with a cash and cash equivalents balance of $106.7 million compared with the prior quarter’s $113 million. Long-term debt at the end of the quarter was $502 million compared with $510.9 million at the end of the prior quarter.

The company generated $145.1 million of cash from operating activities in the quarter and capital expenditure was $8.7 million. Free cash flow came in at $136.4 million. The company paid dividends worth $73 million in the quarter.

Currently, Rollins carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.

EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.


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