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Rollins (ROL) Down 0.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 its most recent earnings report in order to get a better handle on the important drivers.
Adjusted earnings of 30 cents per share beat the consensus estimate by 3.5% and increased 11% year over year. Revenues of $999.5 million topped the consensus mark by 2.1% and improved 12.1% year over year. Organic revenues of $956.9 million rose 7.3% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.
ROL's Second-Quarter Details
Residential revenues increased 4.9% year over year to $428.5 million but missed our estimate of $431.6 million. Commercial revenues rose 11.4% year over year to $320.5 million and surpassed our estimate of $310.3 million. Termite and ancillary revenues increased 13.9% year over year to $211.9 million and beat our estimate of $211.6 million.
Adjusted EBITDA of $231 million jumped 10% year over year. This compares to our expectation of adjusted EBITDA of $227.5 million. The adjusted EBITDA margin of 23.1% decreased 50 basis points (bps) year over year compared to our expectation of an adjusted EBITDA margin of 23.6%.
Rollins exited the quarter with a cash and cash equivalent balance of $123.04 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $485.3 million compared with $395.3 million at the end of the fourth quarter of 2024.
The company generated $175.22 million in cash from operating activities in the quarter, and the capital expenditure was $7.08 million. Free cash flow came in at $168.01 million. ROL paid dividends worth $79 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth 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 this revision 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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Rollins (ROL) Down 0.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 its most recent earnings report in order to get a better handle on the important drivers.
Rollins Q2 Earnings Beat Estimates
Rollins reported better-than-expected second-quarter 2025 results.
Adjusted earnings of 30 cents per share beat the consensus estimate by 3.5% and increased 11% year over year. Revenues of $999.5 million topped the consensus mark by 2.1% and improved 12.1% year over year. Organic revenues of $956.9 million rose 7.3% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.
ROL's Second-Quarter Details
Residential revenues increased 4.9% year over year to $428.5 million but missed our estimate of $431.6 million. Commercial revenues rose 11.4% year over year to $320.5 million and surpassed our estimate of $310.3 million. Termite and ancillary revenues increased 13.9% year over year to $211.9 million and beat our estimate of $211.6 million.
Adjusted EBITDA of $231 million jumped 10% year over year. This compares to our expectation of adjusted EBITDA of $227.5 million. The adjusted EBITDA margin of 23.1% decreased 50 basis points (bps) year over year compared to our expectation of an adjusted EBITDA margin of 23.6%.
Rollins exited the quarter with a cash and cash equivalent balance of $123.04 million compared with the fourth-quarter 2024 figure of $89.6 million. Long-term debt at the end of the quarter was $485.3 million compared with $395.3 million at the end of the fourth quarter of 2024.
The company generated $175.22 million in cash from operating activities in the quarter, and the capital expenditure was $7.08 million. Free cash flow came in at $168.01 million. ROL paid dividends worth $79 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth 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 this revision looks promising. Notably, Rollins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.