The 10-second takeaway
For the quarter ended March 31 (Q1), Rollins met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share didn't change.
Margins dropped across the board.
Rollins booked revenue of $299.7 million. The three analysts polled by S&P Capital IQ predicted a top line of $299.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.16 per share. GAAP EPS of $0.16 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.1%, 70 basis points worse than the prior-year quarter. Operating margin was 11.7%, 100 basis points worse than the prior-year quarter. Net margin was 7.7%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $354.9 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $0.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 91 members out of 96 rating the stock outperform, and five members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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 hold, with an average price target of $28.00.
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