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ServiceMaster Global Holdings reported better-than-expected second-quarter 2020 results.
Adjusted earnings of 40 cents per share beat the consensus mark by 11.1%. Revenues of $534 million surpassed the consensus mark by 3.4%.
Revenues in Detail
Terminix revenues of $517 million increased 5% year over year.
Revenues of $17 million from European Pest Control and Other were impacted by coronavirus-related business closures, including severe disruptions in the United Kingdom.
Revenues from the ServiceMaster Brands Divestiture Group came in at $63 million, down 4% year over year. Growth in national accounts and enhanced cleaning and disinfection services was more than offset by mild winter and decline in area-wide events year over year in ServiceMaster Restore and coronavirus-related shutdown of Merry Maids locations.
Other Quarterly Numbers
Adjusted EBITDA of $119 million went up 14.4% year over year. Adjusted EBITDA margin of 22.4% improved 130 basis points year over year.
The company exited the quarter with cash and cash equivalent balance of $302 million compared with $185 million at the end of the prior quarter. Long-term debt of $1.62 billion was flat sequentially.
The company generated $117 million of net cash from operating activities. Free cash flow came in at $112 million.
ServiceMaster Global Holdings, Inc. Price, Consensus and EPS Surprise
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
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. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
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ServiceMaster (SERV) Beats Q2 Earnings & Revenue Estimates
ServiceMaster Global Holdings reported better-than-expected second-quarter 2020 results.
Adjusted earnings of 40 cents per share beat the consensus mark by 11.1%. Revenues of $534 million surpassed the consensus mark by 3.4%.
Revenues in Detail
Terminix revenues of $517 million increased 5% year over year.
Revenues of $17 million from European Pest Control and Other were impacted by coronavirus-related business closures, including severe disruptions in the United Kingdom.
Revenues from the ServiceMaster Brands Divestiture Group came in at $63 million, down 4% year over year. Growth in national accounts and enhanced cleaning and disinfection services was more than offset by mild winter and decline in area-wide events year over year in ServiceMaster Restore and coronavirus-related shutdown of Merry Maids locations.
Other Quarterly Numbers
Adjusted EBITDA of $119 million went up 14.4% year over year. Adjusted EBITDA margin of 22.4% improved 130 basis points year over year.
The company exited the quarter with cash and cash equivalent balance of $302 million compared with $185 million at the end of the prior quarter. Long-term debt of $1.62 billion was flat sequentially.
The company generated $117 million of net cash from operating activities. Free cash flow came in at $112 million.
ServiceMaster Global Holdings, Inc. Price, Consensus and EPS Surprise
ServiceMaster Global Holdings, Inc. price-consensus-eps-surprise-chart | ServiceMaster Global Holdings, Inc. Quote
Third-Quarter 2020 Guidance
For the third quarter, revenues are expected between $495 and $515 million. The Zacks Consensus Estimate of $490.91 million lies below the guidance.
Adjusted EBITDA is anticipated between $80 and $90 million.
Currently, ServiceMaster carries a Zacks Rank #3 (Hold). 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, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
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. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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