Rollins Reports Q4 Earnings Miss, Shares Drop 15%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ROL?
Source: seekingalpha
- Revenue Miss: Rollins reported Q4 revenue of $913 million, a 9.7% increase year-over-year, yet it fell short of the $925 million consensus estimate, indicating competitive pressures that may affect investor confidence moving forward.
- Adjusted EPS Decline: The adjusted earnings per share came in at $0.25, missing the $0.27 estimate, despite a 12.9% increase in net income to $526.7 million, reflecting challenges in profitability that could raise shareholder concerns about future performance.
- Operating Cash Flow Drop: Operating cash flow decreased by 12.4% to $164.7 million in Q4, indicating pressure on cash management that may hinder future investment and expansion capabilities.
- Optimistic Future Outlook: Despite short-term challenges, Rollins anticipates a healthy pest control market in 2026, with pricing strategies and modernization efforts expected to support margin improvement, demonstrating the company's confidence in future growth.
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Analyst Views on ROL
Wall Street analysts forecast ROL stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 58.690
Low
55.00
Averages
68.11
High
72.00
Current: 58.690
Low
55.00
Averages
68.11
High
72.00
About ROL
Rollins, Inc. is a global consumer and commercial services company. The Company provides essential pest and wildlife control services and protection against termite damage, rodents, and insects to both residential and commercial customers through its subsidiaries and independent franchises located in over 70 countries, including in the United States, Canada, Australia, Europe, and Asia with international franchises in Canada, Central and South America, and others. It operates under one segment, including its three service offerings: Residential service includes pest control services protecting residential properties from common pests, including rodents, insects, and wildlife; Commercial services consist of workplace pest control solutions for customers across diverse end markets, such as healthcare, food service, and logistics, and Termite and Ancillary services offer termite protection services and ancillary services for both residential and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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