A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rollins due for a pullback? 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 drivers.
Rollins' Q4 Earnings Meet Estimates
Rollins reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Adjusted earnings (excluding 1 penny from non-recurring items) of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year. Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
Other Quarterly Details
Organic revenues of $584.4 million declined 8.3% sequentially. Organic revenues on a constant exchange rate were $579.5 million, fell 8.7% sequentially.
Adjusted EBITDA of $122.2 million increased 11.2% year over year. Adjusted EBITDA margin of 20.4% declined 10 basis points (bps) year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $105.3 million compared with the prior quarter’s $117.7 million. The long-term debt at the end of the quarter was $136.3 million compared with $49.3 million at the end of the prior quarter.
The company generated $96.1 million of cash from operating activities while capital expenditures were $7.2 million. Free cash flow was $88.9 million in the quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Rollins has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rollins due for a pullback? 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 drivers.
Rollins' Q4 Earnings Meet Estimates
Rollins reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Adjusted earnings (excluding 1 penny from non-recurring items) of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year. Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
Other Quarterly Details
Organic revenues of $584.4 million declined 8.3% sequentially. Organic revenues on a constant exchange rate were $579.5 million, fell 8.7% sequentially.
Adjusted EBITDA of $122.2 million increased 11.2% year over year. Adjusted EBITDA margin of 20.4% declined 10 basis points (bps) year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $105.3 million compared with the prior quarter’s $117.7 million. The long-term debt at the end of the quarter was $136.3 million compared with $49.3 million at the end of the prior quarter.
The company generated $96.1 million of cash from operating activities while capital expenditures were $7.2 million. Free cash flow was $88.9 million in the quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Rollins has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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