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Rollins Earnings Preview

Rollins (NYSE: ROL  ) is looking to meet the Street's expectations for the fourth consecutive quarter. The company will unveil its latest earnings on Wednesday, July 27. Rollins provides pest and termite control services to residential and commercial customers in North America with international franchises in Mexico, Central America, the Caribbean, the Middle East, and Asia.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Rollins, with analysts unanimously rating it hold. Analysts don't like Rollins as much as competitor Cintas overall. Four out of 12 analysts rate Cintas a buy, compared with zero of two for Rollins. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $321.4 million in revenue this quarter. That would represent a rise of 7.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.21 per share.

What our community says:
CAPS All-Stars are solidly behind the stock with 100% assigning it an "outperform" rating. The community at large backs the All-Stars, with 96.6% awarding it a rating of "outperform." Fools are bullish on Rollins, though the message boards have been quiet lately, with only 35 posts in the past 30 days. Rollins has a bullish CAPS rating of five out of five stars that is about on par with the Fool community's assessment.

Management:
Rollins' profit has risen year over year by an average of 5.8%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 48.1% 47.3% 48.9% 50.3%
Operating Margin 11% 10.8% 13.4% 14.9%
Net Margin 6.9% 6.9% 8.4% 9.3%
For all our Rollins-specific analysis, including earnings and beyond, add Rollins to My Watchlist.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 25, 2011, at 8:01 PM, hoyt2 wrote:

    Rollins has decades of consistent earnings growth. Combine that with a company that has very little debt and excellent management has made this an excellent long term stock for our portfolio.

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DocumentId: 1523202, ~/Articles/ArticleHandler.aspx, 5/26/2012 10:11:58 AM

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Related Tickers

5/25/2012 4:02 PM
ROL $21.18 Down -0.27 -1.26%
Rollins, Inc. CAPS Rating: ***

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