The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rollins beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins shrank, operating margins shrank, net margins were steady.
Rollins booked revenue of $306.4 million. The three analysts polled by S&P Capital IQ expected a top line of $302.5 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $289.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.16 for Q4 were 6.7% higher than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.8%, 90 basis points worse than the prior-year quarter. Operating margin was 11.7%, 40 basis points worse than the prior-year quarter. Net margin was 7.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $299.9 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $0.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 98 rating the stock outperform, and six members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $28.00.
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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. TMFDisclosureHere