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Why Is Rollins (ROL) Down 5.2% 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 lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Rollins Q1 Earnings Beat Estimates
Rollinsreported impressive first-quarter 2023 results that beat the Zacks Consensus Estimate on both counts.
Adjusted earnings of 18 cents per share beat the Zacks Consensus Estimate by 5.9% and increased 20% year over year. The bottom-line surpassed our estimate by 12.5%.
Revenues of $658 million beat the consensus mark by 2.8% and improved 11.4% year over year. The top line surpassed our estimate by 2.9%. Organic revenues of $641.6 million increased 9.2% year over year.
Other Quarterly Details
Adjusted EBITDA of $139.5 million increased 18.4% year over year. Adjusted EBITDA margin of 21.2% increased 130 basis points year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $112.5 million compared with the prior quarter’s $95.3 million. Long-term debt at the end of the quarter was $62.4 million compared with $39.9 million at the end of the prior quarter.
The company generated $100.8 million of cash from operating activities in the quarter and capital expenditure was $7.6 million. Free cash flow came in at $93.1 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Rollins has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It comes with little surprise Rollins has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Rollins (ROL) Down 5.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Rollins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Rollins Q1 Earnings Beat Estimates
Rollins reported impressive first-quarter 2023 results that beat the Zacks Consensus Estimate on both counts.
Adjusted earnings of 18 cents per share beat the Zacks Consensus Estimate by 5.9% and increased 20% year over year. The bottom-line surpassed our estimate by 12.5%.
Revenues of $658 million beat the consensus mark by 2.8% and improved 11.4% year over year. The top line surpassed our estimate by 2.9%. Organic revenues of $641.6 million increased 9.2% year over year.
Other Quarterly Details
Adjusted EBITDA of $139.5 million increased 18.4% year over year. Adjusted EBITDA margin of 21.2% increased 130 basis points year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $112.5 million compared with the prior quarter’s $95.3 million. Long-term debt at the end of the quarter was $62.4 million compared with $39.9 million at the end of the prior quarter.
The company generated $100.8 million of cash from operating activities in the quarter and capital expenditure was $7.6 million. Free cash flow came in at $93.1 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Rollins has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It comes with little surprise Rollins has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.