Rollins Earnings: Here’s Why Investors are Happy Now

Rollins Inc. (NYSE:ROL) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.04%.

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Rollins Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.16 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 3.53% to $299.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rollins Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company missed the mean analyst estimate of $0.16. It missed the average revenue estimate of $302.18 million.

Quoting Management: Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “Our residential and commercial pest control sales start accelerating as the weather warms and pest activity increases. In this regard, the first quarter of 2013 was disappointing, as it was the coldest with the greatest snow fall, in decades. We were pleased to be able to report an increase in revenue however. This was particularly gratifying having come off of a record first quarter in 2012 when the weather was the warmest in over a century. Frankly, this was the most dramatic year-to-year weather reversal that we’ve ever experienced. Profits were negatively impacted from being staffed for the anticipated revenue the first quarter. We did maintain our record of profit increases with a modest improvement over 2012.”

Key Stats (on next page)…

Revenue decreased 2.18% from $306.39 million in the previous quarter. EPS decreased 0% from $0.16 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.25 and has not changed. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.83 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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