Back to top

Image: Bigstock

Why Is Rollins (ROL) Down 3% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 3% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Rollins' Meets Q2 Earnings Estimates, Revenues Lag

Rollins’ second-quarter 2019 earnings came in line with the Zacks Consensus Estimate but revenues lagged the same.

Adjusted earnings came in at 21 cents per share, up 5% year over year. Revenues of $524 million missed the consensus mark by $1 million but improved 9.1% year over year.

Income before income taxes of $87 million decreased 3.6% year over year. Net income of $64.3 million declined 1.9%. Rollins exited the first quarter with cash and cash equivalents balance of $98.5 million compared with $116.6 million in the prior quarter.

In the quarter, Rollins completed acquisition of Clark Pest Control of Stockton. The company continues with its planned investments which are expected to increase margins and market share going forward.

How Have Estimates Been Moving Since Then?

Estimates review followed a flat path over the past two months.

VGM Scores

At this time, Rollins has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

Published in