Rollins (NYSE:ROL) Sets New 12-Month Low After Earnings Miss

Rollins, Inc. (NYSE:ROL)’s stock price reached a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $36.59 and last traded at $38.8570, with a volume of 1826744 shares changing hands. The stock had previously closed at $43.47.

The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). The company had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. Rollins’s revenue was up 7.9% on a year-over-year basis. During the same period last year, the firm posted $0.30 earnings per share.

Rollins Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $0.1825 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.73 annualized dividend and a dividend yield of 1.9%. Rollins’s dividend payout ratio (DPR) is presently 66.97%.

Key Rollins News

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Management said termite and ancillary services continued to post solid growth, and lead volumes improved toward late June and early July, which could support a recovery in coming quarters.
• Positive Sentiment: Several analysts still see upside from current levels despite trimming targets, including Piper Sandler maintaining an overweight rating and BNP Paribas Exane keeping a neutral view with a higher target than the stock’s recent trading level.
• Neutral Sentiment: Rollins has been described as balancing solid Q2 growth with a softer outlook, suggesting the quarter was mixed rather than uniformly negative.
• Neutral Sentiment: Ongoing media coverage around the earnings call and transcript is reinforcing investor focus on management’s commentary about demand trends and margin performance.
• Negative Sentiment: Rollins reported Q2 earnings of $0.32 per share, below the consensus estimate of $0.34, and revenue of about $1.08 billion also came in slightly short of expectations.
• Negative Sentiment: Analysts turned more cautious after the report, with JPMorgan reaffirming an underweight rating and sharply lowering its price target, while Bank of America also cut its target and kept a neutral stance.
• Negative Sentiment: Commentary around slower residential demand and a “downbeat” earnings release has added to the selloff, as the market appears to be recalibrating expectations after a period of high optimism.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ROL shares. UBS Group reissued a “neutral” rating and set a $43.00 price objective on shares of Rollins in a research report on Friday. Barclays set a $45.00 price target on shares of Rollins and gave the stock an “overweight” rating in a research note on Friday. BNP Paribas Exane lowered their price target on shares of Rollins from $63.00 to $44.00 and set a “neutral” rating for the company in a report on Friday. Sanford C. Bernstein downgraded shares of Rollins from an “outperform” rating to a “market perform” rating and dropped their price objective for the company from $70.00 to $52.00 in a research report on Friday, May 29th. Finally, JPMorgan Chase & Co. restated an “underweight” rating and issued a $45.00 price objective (down from $70.00) on shares of Rollins in a report on Friday. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Rollins has an average rating of “Hold” and an average price target of $48.71.

Hedge Funds Weigh In On Rollins

Several hedge funds have recently made changes to their positions in ROL. DV Equities LLC purchased a new stake in shares of Rollins in the fourth quarter valued at about $25,000. Cornerstone Planning Group LLC increased its position in Rollins by 528.4% in the 4th quarter. Cornerstone Planning Group LLC now owns 421 shares of the business services provider’s stock valued at $26,000 after acquiring an additional 354 shares during the period. Torren Management LLC purchased a new position in shares of Rollins in the 4th quarter valued at approximately $36,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Rollins in the fourth quarter valued at approximately $43,000. Finally, Quarry LP raised its stake in shares of Rollins by 155.2% during the fourth quarter. Quarry LP now owns 740 shares of the business services provider’s stock worth $44,000 after purchasing an additional 450 shares during the last quarter. Hedge funds and other institutional investors own 51.79% of the company’s stock.

Rollins Price Performance

The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.59. The company has a 50 day moving average price of $46.11 and a 200 day moving average price of $53.76. The firm has a market cap of $18.58 billion, a PE ratio of 35.08, a PEG ratio of 2.46 and a beta of 0.75.

Rollins Company Profile

Rollins, Inc (NYSE: ROL) is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.