Rollins, Inc.’s ROL first-quarter 2024 earnings meet the Zacks Consensus Estimate and revenues beat the same.
Adjusted earnings of 20 cents per share increased 11.1% year over year. Revenues of $748.3 million beat the consensus mark by 2.9% and improved 13.7% year over year. Organic revenues of $702.4 million increased 7.5% year over year.
Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth in 2024. The company’s acquisitions pipeline remained strong in the quarter.
Rollins’ shares have gained 20.1% in the past six months, outperforming the 19.4% 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 16.5% year over year to $329.3 million and beat our estimate of $309 million. Commercial revenues increased 11.4% year over year to $258.1 million and surpassed our estimate of $239.1 million. Termite and ancillary revenues increased 11.7% year over year to $152 million and beat our estimate of $144.4 million.
Adjusted EBITDA of $161 million increased 19.3% year over year. This compares to our expectation of an adjusted EBITDA of $159.8 million, up 14.6% year over year. Adjusted EBITDA margin of 21.5% increased 100 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 22.8%, up 160 bps year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $113 million compared with the prior quarter’s $103.8 million. Long-term debt at the end of the quarter was $510.9 million compared with $490.8 million at the end of the prior quarter.
The company generated $127.4 million of cash from operating activities in the quarter and capital expenditure was $7.2 million. Free cash flow came in at $120.3 million. The company paid dividends worth $73 million in the quarter.
Currently, Rollins carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Omnicom OMC reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup MAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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