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Rollins (ROL) to Post Q1 Earnings: What's in the Offing?

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Rollins, Inc. (ROL - Free Report) is scheduled to report first-quarter 2020 results on Apr 29, before the bell.

The company’s earnings missed the Zacks Consensus Estimate in the fourth quarter of 2019. The average trailing four-quarter surprise is a negative 3.1%.

Shares of the company have declined 13.9%, over the past year, compared with the 24.2% fall of the industry it belongs to.

Q1 Expectations

Acquisitions, organic growth and pricing are likely to have driven the company’s revenues, the Zacks Consensus Estimate for which is pegged at $475.9 million, indicating 10.9% year-over-year growth. Rollins’ revenues were up 13.8% year over year in the fourth quarter of 2019.

Rollins, Inc. Revenue (TTM)

The bottom line is likely to have benefited from improved efficiency in routing and scheduling technology, offset by rising expenses during the January-March period. With the consensus mark pegged at 14 cents, earnings are expected to remain flat year over year. Earnings were flat year over year in the December-end quarter.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Rollins this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Rollins has an Earnings ESP of -7.14% and currently carries a Zacks Rank of 3.

Stocks to Consider

Here are a few stocks from the broader Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on first-quarter 2020 earnings:

Huron Consulting (HURN - Free Report) has an Earnings ESP of +3.20% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spotify (SPOT - Free Report) has an Earnings ESP of +26.78% and currently holds a Zacks Rank of 3.

ICF International (ICFI - Free Report) has an Earnings ESP of +3.08% and currently carries a Zacks Rank of 3.

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