Here’s what to expect from Rollins’ next earnings…

Rollins, Inc. (ROL), with a market capitalization of $24.4 billion, is a pest control company that provides pest and termite control services to residential and commercial customers worldwide. The Atlanta, Georgia-based company is scheduled to report fiscal second-quarter financial results on Wednesday, July 24.

Ahead of the event, analysts expect Rollins to report earnings of $0.27 per share, up 17.4% from $0.23 per share in the year-ago quarter. The company has met or exceeded Wall Street estimates for net earnings in its last four quarterly reports. Strong demand for pest control helped the company meet consensus EPS estimates in the latest quarter.

Analysts forecast that ROL will post earnings per share of $1 in fiscal 2024, up 11.1% from earnings per share of $0.90 in fiscal 2023.

ROL shares are up 14.3% year-over-year, lagging the S&P 500 Index ($SPX)’s 16.8% gain but outpacing the S&P 500 Industrial Sector SPDR Index’s (XLI) return of 6.5% over the same period.

In the second month of the year, disappointing fourth-quarter earnings led to a 5.7% decline in the stock. Factors included lower-than-expected organic residential revenue and margin expansion due to cold weather impacting pest control demand, and higher operating and advertising costs amid subdued real estate conditions.

However, on April 24, after the release of first-quarter results, the company’s shares rose 3.3% on the back of strong financial results driven by pricing strategies and steady demand for pest control services despite challenging economic conditions.

Analysts are unanimously of the opinion that Rollins’ stock is cautiously bullish, with an overall rating of “Moderate Buy.” Of the nine analysts covering the stock, four recommend a “Strong Buy,” one has a “Moderate Buy” rating, and four give a “Hold” rating. This setup is slightly less bullish than it was three months ago, with five analysts suggesting a “Strong Buy.” ROL is currently trading above analysts’ average price target of $48.88.

On the date of publication, Sohini Mondal did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further information, please refer to Barchart’s Disclosure Policy here.