The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rollins missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share expanded.
Margins expanded across the board.
Rollins reported revenue of $289.1 million. The three analysts polled by S&P Capital IQ anticipated revenue of $295.2 million. Sales were 3.3% higher than the prior-year quarter's $279.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.15. The three earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.15 for Q4 were 9.8% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.7%, 40 basis points better than the prior-year quarter. Operating margin was 12.2%, 130 basis points better than the prior-year quarter. Net margin was 7.5%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $286.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 88 members out of 93 rating the stock outperform, and five members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Rollins a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rollins is outperform, with an average price target of $23.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.