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Rollins (ROL) Beats on Q2 Earnings Amid Coronavirus Crisis

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Rollins, Inc. (ROL - Free Report) reported better-than-expected second-quarter 2020 results.

Adjusted earnings of 23 cents per share beat the Zacks Consensus Estimate by 35.3% and increased 9.5% year over year. The increase was driven by aggressive cost reduction efforts, lower fuel prices and routing and scheduling enhancements.

Revenues of $553.3 million beat the consensus mark by 2.2% and improved 5.6% year over year. Residential revenues recorded 14.8% year over year growth with multiple record setting days of new customer sales.

The company stated that its cost reduction efforts in the quarter are in response to the coronavirus pandemic-induced layoffs, furloughs, temporary reduction of upper management‘s salaries and omission of non-essential travel and capital expenditures.

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. Price, Consensus and EPS Surprise

Other Quarterly Details

Earnings before income taxes (EBIT) of $103.5 million increased 19% year over year. EBIT margin of 18.7% improved 211 basis points (bps) year over year.

Net income of $75.4 million increased 17.2% year over year. Net income margin of 18.7% improved 135 bps year over year. Sales, general and administrative expenses of $171.3 million were up 5.8% year over year.

Rollins exited the first quarter with cash and cash equivalents balance of $134.8 million compared with the prior quarter’s $92.6 million. Long-term debt at the end of the quarter was $242.5 million compared with $307.3 million at the end of the prior quarter.

Currently, Rollins carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.

IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis.

Robert Half's (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.

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