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Rollins (ROL) to Post Q2 Earnings: What's in the Offing?

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Rollins, Inc. (ROL - Free Report) is scheduled to report second-quarter 2019 results on Jul 24, before the bell.

The company posted a negative earnings surprise of 6.67% in the first quarter of 2019. The average trailing four-quarter surprise is -3.11%.

Shares of the company have gained 4.8% year to date, significantly underperforming the 18.1% rally of the industry it belongs to.

Let’s see how things are shaping up for the announcement.

The Zacks Consensus Estimate for Rollins’ revenues in the to-be-reported quarter is pegged at $525 million, indicating an increase of 9.4% from the year-ago quarter’s actual figure.

The expected improvement is likely to be driven by strength across all three lines of businesses — commercial pest control, residential pest control and termite and ancillary. Notably, the company’s revenues remain considerably higher in the second and the third quarters compared with the first and the fourth quarters due to increase in pest activity and metamorphosis of termites in the spring and summer. Rollins’ revenues increased 5% year over year in the first quarter of 2019.

Rollins, Inc. Revenue (TTM)

The consensus mark for earnings in the to-be-reported quarter is pegged at 21 cents, indicating year-over-year increase of 5%. The bottom line is expected to benefit from improved efficiency in routing and scheduling technology.

What Our Model Says

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 -2.44% and Zacks Rank #4.

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 second-quarter 2019 earnings:

S&P Global (SPGI - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2.  The company is slated to report results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #3. The company is slated to release results on Jul 24.

Fiserv has an Earnings ESP of +0.79% and a Zacks Rank #3. The company is slated to report results on Jul 25.

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Rollins, Inc. (ROL) - free report >>

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