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Why Is Rollins (ROL) Up 1.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Rollins due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Rollins Earnings Beat Estimates in Q2

Rollins reported better-than-expected second-quarter 2021 results.

Adjusted earnings of 20 cents per share beat the Zacks Consensus Estimate by 11.1% and the year-ago figure by 33.3%. Revenues of $638.2 million beat the consensus mark by 5.9% and improved 15.3% year over year.

Other Quarterly Details

Earnings before income taxes ("EBIT") of $133.9 million increased 29.4% year over year. EBIT margin of 21% improved 228 basis points (bps) year over year.

Net income of $98.9 million increased 31.2% year over year. Net income margin of 15.5% improved 187 bps year over year. Adjusted net income of $98.5 million increased 30.7% year over year. Adjusted net income margin of 15.4% improved 182 bps year over year.

Rollins exited the quarter with cash and cash equivalents balance of $128.5 million compared with the prior quarter’s $117.3 million. Long-term debt at the end of the quarter was $69.3 million compared with $96.3 million at the end of the prior quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 7.14% due to these changes.

VGM Scores

Currently, Rollins has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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