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Rollins (ROL) Down 9.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Adjusted earnings of 14 cents per share beat the Zacks Consensus Estimate by 27.3% and the year-ago figure by 55.6%. Revenues of $535.6 million beat the consensus mark by 3.5% and improved 9.8% year over year. Residential revenues recorded 14.9% year-over-year growth with termite surging 12.2%.
Other Quarterly Details
Earnings before income taxes of $119.9 million increased more than 100% year over year. EBIT margin of 22.4% improved 1103 basis points (bps) year over year.
Net income of $92.6 million increased more than 100% year over year. Net income margin of 17.3% improved 840 bps year over year. Sales, general and administrative expenses of $162.2 million increased 2.8% year over year.
Rollins exited the fourth quarter with cash and cash equivalents balance of $117.3 million compared with the prior quarter’s $98.5 million. Long-term debt at the end of the quarter was $96.3 million compared with $185.8 million at the end of the prior quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Rollins has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Rollins (ROL) Down 9.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Rollins Earnings Beat Estimates in Q1
Rollins reported better-than-expected first-quarter 2021 results.
Adjusted earnings of 14 cents per share beat the Zacks Consensus Estimate by 27.3% and the year-ago figure by 55.6%. Revenues of $535.6 million beat the consensus mark by 3.5% and improved 9.8% year over year. Residential revenues recorded 14.9% year-over-year growth with termite surging 12.2%.
Other Quarterly Details
Earnings before income taxes of $119.9 million increased more than 100% year over year. EBIT margin of 22.4% improved 1103 basis points (bps) year over year.
Net income of $92.6 million increased more than 100% year over year. Net income margin of 17.3% improved 840 bps year over year. Sales, general and administrative expenses of $162.2 million increased 2.8% year over year.
Rollins exited the fourth quarter with cash and cash equivalents balance of $117.3 million compared with the prior quarter’s $98.5 million. Long-term debt at the end of the quarter was $96.3 million compared with $185.8 million at the end of the prior quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Rollins has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.