Rollins (ROL) Misses on Q1 Earnings Amid Coronavirus Crisis
Rollins, Inc.’s ROL reported mixed first-quarter 2020 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
Adjusted earnings of 13 cents per share missed the consensus mark and declined year over year by 7.1% each. Revenues of $487.9 million beat the consensus mark by 2.5% and improved 13.7% year over year.
The company stated that that its business has been deemed as an essential service by the Department of Homeland Security and so its brands remain open in every part of the world, where it operates, during the coronavirus-induced uncertain period.
The company’s wholly-owned subsidiary, Orkin, has launched a disinfection service called Orkin VitalClean. The disinfectant is labeled for use against a wide range of pathogens, including the causative agents of coronavirus (particularly feline coronavirus and canine coronavirus), swine flu and avian flu.
Notably, shares of the company have gained 4.2% over the past year as against the 9.9% decline of the industry it belongs to.
Other Quarterly Details
Earnings before income taxes (EBIT) of $55.4 million decreased 1.2% year over year. EBIT margin shrunk 171 basis points (bps) year over year.
Net income of $43.3 million decreased 2.2% year over year. Net income margin contracted 144 bps year over year. Sales, general and administrative expenses of $154.8 million were up 13.1% year over year.
Rollins exited the first quarter with cash and cash equivalents balance of $92.6 million compared with the prior quarter’s $94.3 million. Long-term debt at the end of the reported quarter was $307.3 million.
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
The Interpublic Group IPG reported first-quarter 2020 adjusted earnings of 11 cents per share, which beat the consensus mark by 22.2% but remained flat year over year.
Equifax EFX delivered first-quarter 2020 adjusted earnings of $1.40 per share, which outpaced the consensus mark by 8.5% and improved 16% on a year-over-year basis.
ManpowerGroup MAN recorded first-quarter 2020 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate by 2.7% and slumped 48.9% year over year.
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