Rollins (ROL) Q3 Earnings & Revenues Top Estimates, Up Y/Y

Rollins, Inc. ROL reported better-than-expected third-quarter 2020 results.
Adjusted earnings (excluding 2 cents from non-recurring items) of 26 cents per share beat the Zacks Consensus Estimate by 13% and increased 18.2% year over year. The increase was driven by aggressive cost-reduction efforts, lower fuel prices as well as routing and scheduling enhancements.

Revenues of $583.7 million beat the consensus mark by 1.6% and increased 4.9% year over year. Residential revenues recorded 10.6% year-over-year growth.

So far this year, shares of Rollins have gained 80% against 60.2% increase of the industry it belongs to.

Other Quarterly Details

Earnings before income taxes (EBIT) of $108.9 million increased more than 100% year over year. EBIT margin of 18.6% improved 1040 basis points (bps) year over year.

Net income of $79.6 million increased 80.5% year over year. Net income margin of 13.6% improved 570 bps year over year. Sales, general and administrative expenses of $168 million increased marginally year over year.

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Rollins exited the third quarter with cash and cash equivalents balance of $95.4 million compared with the prior quarter’s $134.8 million. Long-term debt at the end of the quarter was $154.4 million compared with $242.5 million at the end of the prior quarter.

Currently, Rollins carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax EFX reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the guidance of $1.30-$1.40.

The Interpublic Group of Companies IPG reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.

IQVIA Holdings IQV reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guidance of $1.47-$1.55.

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