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A month has gone by since the last earnings report for Rollins (ROL). Shares have added about 9.1% 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 the most recent earnings report in order to get a better handle on the important drivers.
Rollins' Q4 Earnings Meet Estimates
Rollins reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Adjusted earnings (excluding 1 penny from non-recurring items) of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year. Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
Other Quarterly Details
Organic revenues of $584.4 million declined 8.3% sequentially. Organic revenues on a constant exchange rate were $579.5 million, fell 8.7% sequentially.
Adjusted EBITDA of $122.2 million increased 11.2% year over year. Adjusted EBITDA margin of 20.4% declined 10 basis points (bps) year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $105.3 million compared with the prior quarter’s $117.7 million. The long-term debt at the end of the quarter was $136.3 million compared with $49.3 million at the end of the prior quarter.
The company generated $96.1 million of cash from operating activities while capital expenditures were $7.2 million. Free cash flow was $88.9 million in the quarter.
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.
At this time, Rollins has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
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
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