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Rollins' (ROL) Q1 Earnings Beat Estimates, Increase Y/Y

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Rollins, Inc. (ROL - Free Report) reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings of 15 cents per share surpassed the Zacks Consensus Estimate and the year-ago figure by 7.1%. Revenues of $590.7 million beat the consensus mark by 2.8% and improved 10.3% year over year.

Rollins’ shares have lost 10.1% over the past year compared with 12.8% decline of the industry it belongs to.

Other Quarterly Details

Organic revenues of $573.1 million increased 7% year over year. Organic revenues, on a constant exchange rate, were $569.5 million, up 6.3% year over year.

Residential revenues of $259.3 million increased 10.2% year over year on a reported basis and 5.8% organically. Commercial revenues of $205.8 million increased 9.1% year over year on a reported basis and 7.9% organically. Termite revenues of $119.7 million increased 13.3% year over year on a reported basis and 8.5% organically.

Adjusted EBITDA of $117.8 million increased 4.2% year over year. Adjusted EBITDA margin of 19.9% declined 116 basis points (bps) year over year.

Rollins exited the quarter with a cash and cash equivalents balance of $258.3 million compared with the prior quarter’s $105.3 million. Long-term debt at the end of the quarter was $280.8 million compared with $136.3 million at the end of the prior quarter.

The company generated $87.5 million of cash from operating activities in the reported quarter while capital expenditures were $8 million. Free cash flow was $79.5 million in the quarter.

Currently, Rollins carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rollins, Inc. Price, Consensus and EPS Surprise Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Earnings Snapshot

Within the broader Business Services sector, ManpowerGroup Inc. ((MAN - Free Report) ), Omnicom Group Inc. ((OMC - Free Report) ) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.

ManpowerGroup’s quarterly results beat both earnings and revenue estimates. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.

MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.

Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.

OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis. 

EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.

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