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:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | $916M | $840.4M | +9.0% | $911.15M | N/A |
| Net Income | $137M | $127.8M | +7.1% | N/A | N/A |
| Earnings Per Share (EPS) | $0.28 | $0.26 | +7.7% | $0.30 | N/A |
| Adjusted EPS | $0.29 | $0.28 | +3.6% | N/A | N/A |
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:
| Segment | Q3 2024 Revenue | YoY Change | Previous Guidance |
|---|---|---|---|
| Residential Services | $428.3M | +6.4% | N/A |
| Commercial Services | $299.6M | +9.4% | N/A |
| Termite and Ancillary | $177.7M | +14.5% | N/A |
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.
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