Rollins (ROL) Up 0.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Rollins (ROL). Shares have added about 0.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rollins due for a pullback? 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 catalysts.
Rollins Q4 Earnings Beat Estimates
Rollins, Inc. reported better-than-expected fourth-quarter 2022 results.
Adjusted earnings of 17 cents per share beat the Zacks Consensus Estimate by 6.3% and increased 21.4% year over year. Revenues of $661.4 million beat the consensus mark by a slight margin and improved 10.2% year over year. Organic revenues of $641.6 million increased 6.9% year over year.
Other Quarterly Details
Adjusted EBITDA of $145.9 million increased 19.5% year over year. The adjusted EBITDA margin of 22.1% increased 180 basis points year over year.
Rollins exited the quarter with a cash and cash equivalent balance of $95.3 million compared with the prior quarter’s $121.9 million. Long-term debt at the end of the quarter was $39.9 million compared with $109.9 million at the end of the prior quarter.
The company generated $123.4 million of cash from operating activities in the quarter and the capital expenditure was $7.7 million. Free cash flow was $115.7 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 10% due to these changes.
VGM Scores
At this time, Rollins has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Rollins has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Rollins, Inc. (ROL) : Free Stock Analysis Report
