Rollins, Inc.’s (ROL - Free Report) fourth-quarter 2023 earnings meet the Zacks Consensus Estimate and revenues beat the same.
Adjusted earnings of 21 cents per share increased 23.5% year over year. Revenues of $754.1 million beat the consensus mark by 0.5% and improved 14% year over year. Organic revenues of $708.4 million increased 7.3% year over year.
Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth. Rollins’ acquisitions pipeline remained strong in the quarter.
Rollins’ shares have gained 22.3% in the past year, outperforming the 17.7% rally of the industry it belongs to.
Quarter Details
Residential revenues increased 17.7% year over year to $340.5 million and beat our estimate of $325.5 million. Commercial revenues increased 10.6% year over year to $256.7 million and surpassed our estimate of $252.5 million. Termite and ancillary revenues increased 13.4% year over year to $147.9 million and beat our estimate of $145.8 million.
Adjusted EBITDA of $166.7 million increased 14.2% year over year. This compares to our expectation of an adjusted EBITDA of $154.8 million, up 7.4% year over year. Adjusted EBITDA margin of 22.1% stayed flat year over year compared with our expectation of an adjusted EBITDA margin of 21%, down 110 bps year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $103.8 million compared with the prior quarter’s $142.2 million. Long-term debt at the end of the quarter was $490.8 million compared with $596.6 million at the end of the prior quarter.
The company generated $152.8 million of cash from operating activities in the quarter and capital expenditure was $11.2 million. Free cash flow came in at $141.6 million. The company paid dividends worth $73 million in the quarter.
Currently, Rollins carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Robert Half (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.
Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.
Aptiv (APTV - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.
S&P Global (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.
Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.
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Rollins, Inc.’s (ROL - Free Report) fourth-quarter 2023 earnings meet the Zacks Consensus Estimate and revenues beat the same.
Adjusted earnings of 21 cents per share increased 23.5% year over year. Revenues of $754.1 million beat the consensus mark by 0.5% and improved 14% year over year. Organic revenues of $708.4 million increased 7.3% year over year.
Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth. Rollins’ acquisitions pipeline remained strong in the quarter.
Rollins’ shares have gained 22.3% in the past year, outperforming the 17.7% rally of the industry it belongs to.
Quarter Details
Residential revenues increased 17.7% year over year to $340.5 million and beat our estimate of $325.5 million. Commercial revenues increased 10.6% year over year to $256.7 million and surpassed our estimate of $252.5 million. Termite and ancillary revenues increased 13.4% year over year to $147.9 million and beat our estimate of $145.8 million.
Adjusted EBITDA of $166.7 million increased 14.2% year over year. This compares to our expectation of an adjusted EBITDA of $154.8 million, up 7.4% year over year. Adjusted EBITDA margin of 22.1% stayed flat year over year compared with our expectation of an adjusted EBITDA margin of 21%, down 110 bps year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $103.8 million compared with the prior quarter’s $142.2 million. Long-term debt at the end of the quarter was $490.8 million compared with $596.6 million at the end of the prior quarter.
The company generated $152.8 million of cash from operating activities in the quarter and capital expenditure was $11.2 million. Free cash flow came in at $141.6 million. The company paid dividends worth $73 million in the quarter.
Currently, Rollins carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Robert Half (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.
Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.
Aptiv (APTV - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.
S&P Global (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.
Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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