Rollins (ROL) to Report Q3 Earnings: What's in the Cards?

ROL VRSK TRU SPGI

Rollins, Inc. (ROL - Free Report) is scheduled to report third-quarter 2019 results on Oct 23, before the bell.

The company’s earnings matched the Zacks Consensus Estimate in the second quarter of 2019. The average trailing four-quarter surprise is a negative 2.31%.

Shares of the company have gained 0.5% year to date, significantly underperforming the 16.1% rally of the industry it belongs to.

Q3 Expectations

Acquisition of Clark Pest Control and organic growth are likely to have driven revenues, the Zacks Consensus Estimate for which is pegged at $546 million, indicating 11.9% year-over-year growth. Rollins’ revenues increased 9.1% year over year in the second quarter of 2019.

Rollins, Inc. Revenue (TTM)

Notably, the company’s revenues were 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. 

The bottom line is likely to have benefited from improved efficiency in routing and scheduling technology. The consensus mark for earnings in the to-be-reported quarter is pegged at 22 cents, indicating year-over-year increase of 4.8%. Earnings increased 5% year over year in the second quarter of 2019.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Rollins this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. 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.

Stocks That Warrant a Look

Here are some stocks that you may want to consider as our model shows that these have the right combination of elements to deliver a positive earnings surprise:

S&P Global (SPGI - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verisk (VRSK - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29.

TransUnion (TRU - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #3. The company is slated to release results on Oct 22.

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