ROLLINS STOCK DROPS 14.8% FOLLOWING Q4 PROFIT AND REVENUE DISAPPOINTMENT
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ROL?
Source: moomoo
- Stock Performance: Rollins shares fell by 14.8% following the release of their Q4 profit report.
- Revenue Concerns: The company missed revenue estimates, raising concerns among investors.
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Analyst Views on ROL
Wall Street analysts forecast ROL stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 58.690
Low
55.00
Averages
68.11
High
72.00
Current: 58.690
Low
55.00
Averages
68.11
High
72.00
About ROL
Rollins, Inc. is a global consumer and commercial services company. The Company provides essential pest and wildlife control services and protection against termite damage, rodents, and insects to both residential and commercial customers through its subsidiaries and independent franchises located in over 70 countries, including in the United States, Canada, Australia, Europe, and Asia with international franchises in Canada, Central and South America, and others. It operates under one segment, including its three service offerings: Residential service includes pest control services protecting residential properties from common pests, including rodents, insects, and wildlife; Commercial services consist of workplace pest control solutions for customers across diverse end markets, such as healthcare, food service, and logistics, and Termite and Ancillary services offer termite protection services and ancillary services for both residential and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
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- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
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- Ongoing Investments and Acquisitions: The company made substantial investments in talent development and cross-brand collaboration while acquiring Saela and 26 additional tuck-in deals, with Saela's performance exceeding expectations and integration progressing smoothly, enhancing market competitiveness.
- Cash Flow and Profitability: Adjusted EBITDA for the fourth quarter reached $854 million, up 10.8%, with operating cash flow of $678 million and free cash flow of $650 million, reflecting increases of 11.6% and 12.1%, respectively, showcasing the company's robust financial health.
- Optimistic Future Outlook: Management expects organic growth to range between 7% and 8% in 2026, with an additional 2% to 3% growth from M&A, and despite short-term impacts from weather on one-time revenues, the company remains confident in its long-term growth prospects.
See More
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- Strong Chip Demand: Sandisk's stock surged over 8% following Kioxia's forecast of robust demand for NAND memory chips, indicating strong global demand for AI infrastructure, which boosts market confidence in tech stocks.
- Tech Stock Pressure: Cisco Systems' stock fell more than 9% as it warned that rising memory chip prices would erode profitability, limiting overall gains in tech stocks and reflecting cost pressures faced by the industry.
- Labor Market Data: U.S. initial jobless claims fell by 5,000 to 227,000, indicating a slightly weaker labor market than the expected 223,000, which may affect market expectations for future economic growth.
- Corporate Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 78% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing support for the market and demonstrating corporate resilience.
See More
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- Overview of Updates: While specific upgrades and downgrades are not detailed, the overall rating changes may prompt investors to reassess their positions, potentially affecting trading volumes and price fluctuations of the related stocks.
- Expected Market Reaction: Analyst rating adjustments typically elicit immediate market responses, and investors should monitor these changes to seize potential investment opportunities or mitigate risks.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, and investors are encouraged to regularly check the analyst ratings page for the latest updates.
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