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Rollins (ROL) Down 1.5% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Rollins (ROL - Free Report) . Shares have lost about 1.5% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.

Rollins Miss Earnings Estimates in Q4

Rollins fourth-quarter 2019 earnings missed the Zacks Consensus Estimate but revenues beat the same.

Adjusted earnings of 16 cents per share missed the consensus mark by 5.9%, remaining flat year over year. Revenues of $506 million marginally beat the consensus mark of $504 million and improved 13.8% year over year.

For full-year 2019, adjusted earnings climbed 1.4% to 73 cents per share. Revenues increased 10.6% to $2 billion. The Zacks Consensus Estimate was of earnings of $7.03 per share on revenues of $46.9 billion.

Other Details

Income before income taxes of $72 million increased slightly year over year. Net income of $50.8 million decreased 3.6% year over year. Sales, general and administrative expenses of $154.8 million were up 14% year over year.

Rollins exited the fourth quarter with cash and cash equivalents balance of $94.3 million compared with $104.4 million in the prior quarter. Long-term debt at the end of the quarter was $279 million.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

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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