Rollins, Inc. Set to Announce Earnings Amid Market Challenges
Rollins, Inc. (ROL), based in Atlanta, Georgia, provides pest and wildlife control services to both residential and commercial clients worldwide. With a market cap of $23.4 billion, the company offers services to various sectors, including healthcare, food service, and logistics, focusing on issues like termites, rodents, and insects. The company is scheduled to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, February 12, after market hours.
Analysts forecast that ROL will report earnings of $0.23 per share on a diluted basis, reflecting a 9.5% increase from $0.21 per share in the same quarter last year. Historically, ROL has met or exceeded analyst expectations in three of the last four quarters, although it fell short on one occasion.
2024 Outlook Shows Positive Trends
For the fiscal year, the earnings per share (EPS) for ROL is anticipated to be $0.99, a 10% increase from $0.90 in fiscal 2023. Looking ahead, EPS is projected to grow further to $1.09 in fiscal 2025, marking a year-over-year rise of 10.1%.
Stock Performance Compared to Market Indices
Over the past year, ROL shares have increased by 10.6%, underperforming compared to the S&P 500, which gained 24.6%, as well as the Consumer Discretionary Select Sector SPDR Fund (XLY), which rose by 30.1% during the same period.
Challenges Impacting Performance
ROL’s recent struggles can be attributed to significant competition in the industry, rising labor costs leading to service quality issues, and soaring expenses that have outpaced revenue growth, ultimately affecting profitability.
Recent Earnings Report and Analyst Sentiments
On October 23, ROL released its Q3 results, and the company’s shares dropped more than 6% in the subsequent trading session. While revenue reached $916.3 million, surpassing the analysts’ expectations of $908.3 million, the adjusted EPS of $0.29 fell short of the projected $0.30.
Currently, analysts view ROL stock as moderately bullish, assigning a “Moderate Buy” rating overall. Among the 11 analysts covering the stock, four recommend a “Strong Buy,” one opts for a “Moderate Buy,” and six suggest a “Hold.” The consensus average price target for ROL stands at $50.40, indicating a potential upside of 4.3% from present levels.
On the date of publication, Neha Panjwani did not hold positions, either directly or indirectly, in any of the securities mentioned in this article. All information and data contained in this article are intended solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
