Rollins Earnings: Here’s Why Investors are Selling Shares 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 down 7.89%.

Rollins Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.7% to $0.25 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 4.76% to $350.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rollins Inc. reported adjusted EPS income of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0.25. It missed the average revenue estimate of $352.54 million.

Quoting Management: Commenting on the Company’s results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. said, “We are very pleased with the solid financial results our Company reported for the second quarter. We are particularly pleased about the growth we experienced in revenues, which accelerated over our first quarter. This improvement reflects the positive impact of our new marketing and sales programs.”

Key Stats (on next page)…

Revenue increased 17.05% from $299.71 million in the previous quarter. EPS increased 56.25% 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 $0.24 and has not changed. For the current year, the average estimate is a profit of $0.83, which is the same with that ninety days ago.

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

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