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Rollins' (ROL) Q2 Earnings Meet Estimates, Revenues Lag

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Rollins, Inc.’s (ROL - Free Report) second-quarter 2019 earnings came in line with the Zacks Consensus Estimate but revenues lagged the same.

Adjusted earnings came in at 21 cents per share, up 5% year over year. Revenues of $524 million missed the consensus mark by $1 million but improved 9.1% year over year.

Income before income taxes of $87 million decreased 3.6% year over year. Net income of $64.3 million declined 1.9%. Rollins exited the first quarter with cash and cash equivalents balance of $98.5 million compared with $116.6 million in the prior quarter.

In the quarter, Rollins completed acquisition of Clark Pest Control of Stockton. The company continues with its planned investments which are expected to increase margins and market share going forward.

We observe that shares of the company have gained 5.7% year to date, underperforming the 18.9% rally of the industry it belongs to.

Zacks Rank & Stocks to Consider

Currently, Rollins carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Zacks Business Services sector include Broadridge (BR - Free Report) , Accenture (ACN - Free Report) and Visa (V - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for Broadridge, Accenture and Visa is 10%, 10.3% and 16.4%, respectively.

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