Rollins' (ROL) Q3 Earnings Beat Estimates, Increase Y/Y
Rollins, Inc. ROL reported better-than-expected third-quarter 2023 results.
Adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate by 16.7% and increased 27.3% year over year. Revenues of $840.4 million beat the consensus mark by 1.5% and improved 15.2% year over year. Organic revenues of $790.5 million increased 8.4% year over year.
Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services. Management said that the company remains well-positioned for organic as well as inorganic growth. Rollins’ acquisitions pipeline remained strong in the quarter.
Rollins’ shares have lost 16.3% in the past year against the 15.9% rally of the industry it belongs to.
Rollins, Inc. Price, Consensus and EPS Surprise
Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote
Quarter Details
Residential revenues increased 19.7% year over year to $404.3 million and beat our estimate of $370.5 million. Commercial revenues increased 11.8% year over year to $272.2 million but missed our estimate of $277.5 million. Termite and ancillary revenues increased 11% year over year to $155.1 million but missed our estimate of $164.4 million.
Adjusted EBITDA of $208.5 million increased 22.7% year over year. This compares to our expectation of an adjusted EBITDA of $182.4 million, up 7.4% year over year. Adjusted EBITDA margin of 24.8% increased 150 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 22.2%, down 110 bps year over year.
Rollins exited the quarter with a cash and cash equivalents balance of $142.2 million compared with the prior quarter’s $154.7 million. Long-term debt at the end of the quarter was $596.6 million compared with $337.5 million at the end of the prior quarter.
The company generated $147 million of cash from operating activities in the quarter and capital expenditure was $7 million. Free cash flow came in at $141 million. The company generated $127.4 million in cash from operating activities and paid dividends worth $64 million in the quarter.
Currently, Rollins carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc.’s IPG third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
