Rollins, Inc. (NYSE:ROL) reported **EPS of $0.2671** and **revenue of $891.92 million**, slightly below analyst expectations.
The company demonstrated consistent growth with revenue increasing from the previous year and matched the Zacks Consensus Estimate for EPS.
Despite a high P/E ratio of **52.54**, Rollins maintains a solid market position with a focus on organic growth and strategic acquisitions.
Rollins, Inc. (NYSE:ROL), a leading company in the pest and termite control industry, announced its second-quarter earnings for 2024 on Wednesday, July 24, after the market closed. Operating well-known brands such as Orkin, the company disclosed an earnings per share (EPS) of $0.2671, just below the estimated $0.27, and a revenue of $891.92 million, narrowly missing the forecast of $895.02 million. This performance indicates a steady growth path, albeit with minor deviations from analyst expectations.
The reported earnings were in line with the Zacks Consensus Estimate of $0.27 per share, marking an improvement from the previous year’s earnings of $0.23 per share. This consistency in meeting earnings estimates, coupled with a revenue increase from $820.75 million in the same quarter the previous year to approximately $891.9 million, underscores Rollins’ solid position in the market. The company’s ability to maintain revenue growth, with a slight beat of 0.13% against the Zacks Consensus Estimate, highlights its steady performance in the Building Products – Maintenance Service industry.
Jerry Gahlhoff, Jr., President and CEO of Rollins, attributed the company’s strong performance to organic growth of 7.7 percent and an improving margin profile. He emphasized the strong demand for Rollins’ services and a robust pipeline for acquisitions, expressing confidence in the company’s trajectory for the remainder of 2024. This focus on continuous improvement and profitability enhancement, along with the team’s contributions, has been pivotal in driving the company’s success.
Financially, Rollins is trading with a price-to-earnings (P/E) ratio of approximately 52.54, indicating a higher valuation compared to the industry average. The company’s premium valuation is further reflected in its price-to-sales (P/S) ratio of about 7.48 and an enterprise value to sales (EV/Sales) ratio of roughly 7.71. Despite potential liquidity challenges, as indicated by a current ratio of approximately 0.78, Rollins’ moderate level of debt relative to equity, with a debt-to-equity (D/E) ratio of about 0.71, suggests a balanced approach to financing its operations.
In summary, Rollins, Inc.’s financial results for the second quarter of 2024 demonstrate its ability to sustain growth and meet market expectations, despite slight misses in earnings and revenue forecasts. The company’s strategic focus on organic growth, profitability, and acquisitions positions it well for continued success in the competitive pest control industry.