Rollins (NYSE:ROL) Posts Quarterly Earnings Results, Hits Expectations

Key Points

• Rollins met earnings expectations, reporting quarterly EPS of $0.34, while revenue of $1.09 billion fell short of analysts’ $1.11 billion forecast.
• The company raised its quarterly dividend to $0.20 per share from $0.1825, implying an annualized payout of $0.80 and a 2.4% yield.
• Analyst sentiment remains cautious: Rollins has an average “Hold” rating and a $42.47 target price, while several firms recently lowered their price targets.

Rollins (NYSE:ROL - Get Free Report) announced its earnings results on Wednesday. The business services provider reported $0.34 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.34, FiscalAI reports. The business had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.11 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%.

Rollins Trading Up 0.6%

ROL stock traded up $0.19 during trading on Wednesday, hitting $33.53. The company had a trading volume of 7,896,452 shares, compared to its average volume of 4,539,326. The stock has a market cap of $16.13 billion, a price-to-earnings ratio of 30.48, a PEG ratio of 3.63 and a beta of 0.73. The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34. The firm has a 50-day moving average price of $33.82 and a 200-day moving average price of $42.88. Rollins has a 12 month low of $29.28 and a 12 month high of $66.14.

Rollins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a $0.20 dividend. This is a boost from Rollins's previous quarterly dividend of $0.1825. The ex-dividend date is Tuesday, November 10th. This represents a $0.80 annualized dividend and a yield of 2.4%. Rollins's dividend payout ratio is presently 66.36%.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Wells Fargo & Company restated an "underweight" rating and issued a $27.00 price target (down from $32.00) on shares of Rollins in a research report on Tuesday, September 29th. Morgan Stanley dropped their price objective on shares of Rollins from $45.00 to $43.00 and set an "overweight" rating for the company in a report on Tuesday, October 13th. Weiss Ratings cut shares of Rollins from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. BNP Paribas Exane reduced their target price on Rollins from $44.00 to $35.00 and set a "neutral" rating on the stock in a report on Tuesday, September 29th. Finally, Piper Sandler lowered Rollins from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $46.00 to $33.00 in a research report on Wednesday, September 23rd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Rollins has an average rating of "Hold" and an average target price of $42.47.

Rollins News Summary

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Rollins increased its quarterly cash dividend to $0.20 per share, up approximately 10% from the same quarter a year ago. The new rate implies an annualized dividend of $0.80 and a yield of about 2.4%, providing support for income-focused investors. Rollins, Inc. Increases Regular Quarterly Cash Dividend
• Neutral Sentiment: Rollins is scheduled to report quarterly earnings shortly, making the results and management outlook an important near-term catalyst. Investors will likely focus on revenue growth, margins, and whether earnings can justify the company’s valuation. Rollins Reports Earnings Tomorrow: What to Expect
• Neutral Sentiment: A valuation-focused analysis highlights a potentially significant fair-value gap for ROL, placing added importance on the upcoming earnings report and the company’s dividend growth. The article could influence investor expectations, although it does not represent a company announcement. Rollins Faces a 106% Fair Value Gap on Earnings and Dividend Focus
• Negative Sentiment: Options traders purchased 10,334 put contracts, roughly 605% above the typical daily volume of 1,465. The surge signals increased hedging or bearish speculation around ROL, though options activity alone does not confirm a deterioration in the company’s fundamentals.

About Rollins

Rollins, Inc is a provider of pest and termite control services for residential and commercial customers. The company offers protection against common pests such as ants, cockroaches, rodents, termites, mosquitoes and bedbugs, along with wildlife control and other specialty services.

Rollins serves customers through a portfolio of regional and international brands, including Orkin, the company's best-known pest control business; HomeTeam Pest Defense; Western Pest Services; Critter Control; and other local and specialized operations.

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