Rollins Inc Reports Third Quarter 2024 Financial Results

Rollins, Inc. Reports Third Quarter 2024 Financial Results

Rollins, Inc. (NYSE: ROL), a leading global consumer and commercial services company, announced its unaudited financial results for the third quarter of 2024.

Key Financial Metrics:

Rollins reported a robust 9.0% increase in total revenue year-over-year, surpassing analyst expectations. However, the EPS of $0.28 fell short of the consensus estimate of $0.30, despite a 7.7% increase from the previous year.

Segment Revenue Performance:

The company experienced strong growth across all major segments, with termite and ancillary services leading at a 14.5% increase. This performance aligns with Rollins' strategic focus on expanding its service offerings.

Management Commentary:

Jerry Gahlhoff, Jr., President and CEO, highlighted the company's strong organic revenue growth of 7.7%, despite operational disruptions from Hurricane Helene. Kenneth Krause, Executive Vice President and CFO, emphasized ongoing investments in growth, which are expected to support long-term objectives despite short-term margin pressures.

Dividends and Share Repurchase Program:

Rollins announced a 10% increase in its quarterly dividend to $0.165 per share, payable on December 10, 2024, to shareholders of record on November 12, 2024.

Forward Guidance:

The company did not provide specific forward guidance but indicated confidence in achieving healthy margin improvement and double-digit earnings growth for the year.

Stock Price Movement:

Following the earnings release, Rollins' stock experienced a decline of approximately 5.2%, closing at $47.15, reflecting investor concerns over the EPS miss and margin pressures.

Overall, Rollins, Inc. continues to demonstrate resilience and strategic growth in a challenging market environment, positioning itself for future success.