Overview
Rollins Q3 revenue grows 12% yr/yr to $1 bln, missing analyst expectations
Adjusted EBITDA for Q3 beats consensus, reflecting improved operational efficiency
Company reports 21.4% increase in EPS, driven by strong cash flow and acquisitions
Outlook
Rollins remains focused on growth through organic means and acquisitions
Company emphasizes continuous improvement initiatives to enhance profitability
Rollins highlights strong balance sheet and access to investment grade credit markets
Result Drivers
ORGANIC GROWTH - Organic revenues increased by 7.2%, contributing significantly to overall revenue growth
ACQUISITIONS - Company invested $35 mln in acquisitions, aiding revenue and EPS growth
MARGIN IMPROVEMENT - Operating margin increased by 100 basis points, reflecting improved operational efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1 bln | $1.02 bln (8 Analysts) |
Q3 EPS | $0.34 | ||
Q3 Net Income | $164 mln | ||
Q3 Adjusted EBITDA | Beat | $258 mln | $251.40 mln (7 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Rollins Inc is $61.50, about 8.9% above its October 28 closing price of $56.05
The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 48 three months ago
Press Release: ID:nPn7r3mxPa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)