Rollins (ROL) is expected to reiterate its 2025 guidance during its Q3 results, RBC said in a note emailed Tuesday.
The pest control company may continue to expect 7% to 8% organic growth for the year amid increases in pricing and volume growth, supported by services such as termite and insulation offerings and market expansion, RBC said.
RBC said it is modeling Q3 revenue growth of more than 11% to $1.02 billion, as well as earnings of $0.33 per share, both in line with consensus estimates.
The investment firm also projects upside to its Q3 residential organic revenue growth estimate of 5%, backed by warm and dry weather; a further upside to commercial organic revenue growth estimate of 8%, driven by strategic investments; and ancillary services organic growth of 10% amid strong implementation and deeper engagement among existing clients, according to the note.
RBC said that it does not see tariffs as a significant headwind for the company as it procures its products from DOW (DOW), Syngenta, and others, adding that Rollins is closely monitoring potential tariff impact from fleet leasing.
RBC rated Rollins as outperform with a $62 price target.
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