Rollins Inc Reports Third Quarter 2024 Financial Results

authorIntellectia.AI2024-10-24
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ROL.N
Illustration by Intellectia.AI

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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