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Rollins' Q3 Earnings Miss Estimates, Increase Year Over Year
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Rollins, Inc. (ROL - Free Report) reported mixed third-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
Adjusted earnings of 29 cents per share missed the consensus estimate by 3.3% but increased 3.6% year over year. Revenues of $916.3 million beat the consensus mark by a slight margin and improved 9% year over year. Organic revenues of $898.9 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 45% in the past year, underperforming the 46% rally of the industry it belongs to.
Residential revenues increased 6.4% year over year to $428.3 million but missed our estimate of $432.7 million. Commercial revenues increased 9.4% year over year to $299.6 million and surpassed our estimate of $298.8 million. Termite and ancillary revenues increased 14.5% year over year to $177.7 million and beat our estimate of $162.6 million.
Adjusted EBITDA of $219 million increased 5.5% year over year. This compares to our expectation of an adjusted EBITDA of $234.1 million. Adjusted EBITDA margin of 24% decreased 80 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 25.9%.
Rollins exited the quarter with a cash and cash equivalents balance of $95.3 million compared with the prior quarter’s $106.7 million. Long-term debt at the end of the quarter was $445.2 million compared with $502 million at the end of the prior quarter.
The company generated $146.9 million in cash from operating activities in the quarter, and capital expenditure was $7.5 million. Free cash flow came in at $139.4 million. The company paid dividends worth $73 million in the quarter.
Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.
Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.
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Rollins' Q3 Earnings Miss Estimates, Increase Year Over Year
Rollins, Inc. (ROL - Free Report) reported mixed third-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
Adjusted earnings of 29 cents per share missed the consensus estimate by 3.3% but increased 3.6% year over year. Revenues of $916.3 million beat the consensus mark by a slight margin and improved 9% year over year. Organic revenues of $898.9 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 45% in the past year, underperforming the 46% rally of the industry it belongs to.
Rollins, Inc. Price, Consensus and EPS Surprise
Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote
Quarter Details
Residential revenues increased 6.4% year over year to $428.3 million but missed our estimate of $432.7 million. Commercial revenues increased 9.4% year over year to $299.6 million and surpassed our estimate of $298.8 million. Termite and ancillary revenues increased 14.5% year over year to $177.7 million and beat our estimate of $162.6 million.
Adjusted EBITDA of $219 million increased 5.5% year over year. This compares to our expectation of an adjusted EBITDA of $234.1 million. Adjusted EBITDA margin of 24% decreased 80 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 25.9%.
Rollins exited the quarter with a cash and cash equivalents balance of $95.3 million compared with the prior quarter’s $106.7 million. Long-term debt at the end of the quarter was $445.2 million compared with $502 million at the end of the prior quarter.
The company generated $146.9 million in cash from operating activities in the quarter, and capital expenditure was $7.5 million. Free cash flow came in at $139.4 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 third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.
Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.