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Rollins (ROL) to Report Q1 Earnings: What's in the Cards?

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Rollins, Inc. (ROL - Free Report) is slated to report first-quarter 2019 results on Apr 24, before the bell.

The company posted a negative earnings surprise of 5.88% in the fourth quarter of 2018. The average trailing four-quarter surprise is a negative 1.45%.

Shares of the company have gained 25.6% over the past year, significantly outperforming the industry’s 14.6% rally.

How Things are Shaping Up for the Announcement?

The Zacks Consensus Estimate for the company’s revenues in the to-be-reported quarter is pegged at $431 million, indicating an increase of 5.4% from the year-ago quarter’s actual figure.

Rollins, Inc. Revenue (TTM)

The expected improvement is likely to be driven by strength across all three lines of business — commercial pest control, residential pest control, and termite and ancillary. The residential and termite segments should continue to benefit from the OPC acquisition. The bottom line is expected to benefit from improved efficiency in routing and scheduling technology.

If results are in line with expectations, the first quarter will mark the 52nd consecutive quarter of earnings and revenue growth.

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Rollins has an Earnings ESP of 0.00% and Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

SailPoint Technologies , with an Earnings ESP of +100.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Total System Services , with an Earnings ESP of +1.44% and a Zacks Rank #3.

EVERTEC (EVTC - Free Report) , with an Earnings ESP of +2.74% and a Zacks Rank #3.

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