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Adjusted earnings of 23 cents per share met the consensus estimate and increased 9.5% year over year. Revenues of $832.2 million beat the consensus mark by 2% and improved 10.6% year over year. Organic revenues of $814 million increased 8.5% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.
Rollins shares have risen 9.1% in the past year, underperforming the 17.1% rally of the industry.
ROL’s Fourth-Quarter Details
Residential revenues increased 8.4% year over year to $369.1 million but missed our estimate of $366.1 million. Commercial revenues rose 9.3% year over year to $280.5 million and surpassed our estimate of $269.5 million. Termite and ancillary revenues increased 14.2% year over year to $172.4 million and beat our estimate of $163.3 million.
Adjusted EBITDA of $181 million increased 9% year over year. This compares to our expectation of an adjusted EBITDA of $184.1 million. The adjusted EBITDA margin of 21.8% decreased 20 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 22.7%.
Rollins exited the quarter with a cash and cash equivalent balance of $89.6 million compared with the prior-year quarter’s $103.8 million. Long-term debt at the end of the quarter was $395.3 million compared with $490.8 million at the end of the prior quarter.
The company generated $188.2 million in cash from operating activities in the quarter, and the capital expenditure was $4.2 million. Free cash flow came in at $184 million. The company paid dividends worth $80 million in the quarter.
Currently, Rollins carries a Zacks Rank #4 (Sell).
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis.
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Rollins Q4 Revenues Beat Estimates and Increase Year Over Year
Rollins, Inc.’s (ROL - Free Report) fourth-quarter 2024 earnings met the Zacks Consensus Estimate, and revenues beat the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
Adjusted earnings of 23 cents per share met the consensus estimate and increased 9.5% year over year. Revenues of $832.2 million beat the consensus mark by 2% and improved 10.6% year over year. Organic revenues of $814 million increased 8.5% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.
Rollins, Inc. Price, Consensus and EPS Surprise
Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote
Rollins shares have risen 9.1% in the past year, underperforming the 17.1% rally of the industry.
ROL’s Fourth-Quarter Details
Residential revenues increased 8.4% year over year to $369.1 million but missed our estimate of $366.1 million. Commercial revenues rose 9.3% year over year to $280.5 million and surpassed our estimate of $269.5 million. Termite and ancillary revenues increased 14.2% year over year to $172.4 million and beat our estimate of $163.3 million.
Adjusted EBITDA of $181 million increased 9% year over year. This compares to our expectation of an adjusted EBITDA of $184.1 million. The adjusted EBITDA margin of 21.8% decreased 20 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 22.7%.
Rollins exited the quarter with a cash and cash equivalent balance of $89.6 million compared with the prior-year quarter’s $103.8 million. Long-term debt at the end of the quarter was $395.3 million compared with $490.8 million at the end of the prior quarter.
The company generated $188.2 million in cash from operating activities in the quarter, and the capital expenditure was $4.2 million. Free cash flow came in at $184 million. The company paid dividends worth $80 million in the quarter.
Currently, Rollins carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of ROL’s Peers
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis.