(ROL - Free Report
) is keeping a watchful eye on the news as fears about bed bugs grows. The company is expected to see double digit earnings growth in 2010 and 2011.
Rollins, Inc. provides pest control and services to homes, work places and restaurants from 500 locations in the United States, Mexico, Canada, Europe, Central America, the Caribbean and the Middle East. It offers protection against termites, rodents and other insects.
The company operates many well-known pest control brands such as Orkin, Western Pest Services, PCO Services, The Industrial Fumigant Company and Crane Pest Control.
Revenue Rose 5% in the Second Quarter
On July 28, Rollins reported its second quarter results which saw revenue rise 5% to $298,8 million from $284.6 million in the year ago period. All major brands saw revenue increases.
The company met the Zacks Consensus of 28 cents but this was also 2 cents better than the year ago period.
"The acquisition of Waltham Services announced earlier this month will expand our presence in New England and reinforce our geographic footprint," said Gary Rollins, President and CEO.
Double Digit Earnings Growth in 2010 and 2011
Analysts are bullish about the rest of the year and 2011.
While the Zacks Consensus Estimate for 2010 has held at 89 cents over the last 90 days, this is still earnings growth of 12%.
Earnings are expected to jump another 13.4% in 2011, with the 2011 Zacks Consensus holding at $1.01 per share.
Rollins has a solid track record of either meeting or beating the Zacks Consensus over the last 3 years.
Rollins has a dividend currently yielding 1.7%, which is far higher than the industry average which is zero.
The company did not cut its dividend during the financial crisis and actually raised the quarterly dividend 2 cents to 9 cents from 2009.
Rollins is a Zacks #2 Rank (buy) stock.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.