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Rollins, Inc. (ROL), with a market cap of $24.4 billion, is a pest management company that offers pest and termite control services to residential and commercial customers worldwide. The Atlanta, Georgia-based company is expected to announce its fiscal Q2 earnings results on Wednesday, Jul. 24.
Ahead of this event, analysts expect Rollins to report a profit of $0.27 per share, up 17.4% from $0.23 per share in the year-ago quarter. The company has met or surpassed Wall Street's bottom-line estimates in the past four quarterly reports. High pest control demand helped the company meet the consensus EPS estimate in the most recent quarter.
For fiscal 2024, analysts expect ROL to report EPS of $1, up 11.1% from $0.90 in fiscal 2023.
ROL has surged 14.3% on a YTD basis, underperforming the S&P 500 Index's ($SPX) 16.8% gain but outpacing the S&P 500 Industrial Sector SPDR's (XLI) 6.5% returns over the same period.
In the second month of the year, disappointing Q4 earnings results led to a 5.7% decline in shares. Factors included lower-than-expected organic residential revenue and margin expansion due to cold weather affecting pest control demand, alongside higher operating and advertising costs amid subdued housing market conditions.
However, the stock surged 3.3% following its Q1 earnings result on Apr. 24 due to its strong revenue performance driven by pricing strategies and steady demand for pest control services despite challenging economic conditions.
Analysts' consensus view on Rollins stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of nine analysts covering the stock, four recommend a "Strong Buy," one has a "Moderate Buy" rating, and four give a "Hold" rating. This configuration is slightly less bullish than three months ago, with five analysts suggesting a "Strong Buy." Currently, ROL is trading above the average analyst price target of $48.88.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
