Although the revenue and EPS for Rollins (ROL) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Rollins, Inc. (NYSE:ROL ) Q4 2024 Earnings Conference Call February 13, 2025 8:30 AM ET Company Participants Lyndsey Burton - Vice President, Investor Relations Jerry Gahlhoff - Chief Executive Officer and President Kenneth Krause - Executive Vice President and Chief Financial Officer Conference Call Participants Tim Mulrooney - William Blair George Tong - Goldman Sachs Ronan Kennedy - Barclays Ashish Sabadra - RBC Capital Jason Haas - Wells Fargo Aadit Shrestha - Stifel Karan Singhania - UBS Peter Sullvian - Jefferies Operator Greetings, and welcome to the Rollins Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
ROL's fourth-quarter 2024 revenues rise 10.6% on a year-over-year basis.
Rollins (ROL) came out with quarterly earnings of $0.23 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.21 per share a year ago.
Rollins outperformed revenue expectations in its Q4 2024 earnings, though net income saw a slight decline due to increased operational costs.
ROL's fourth-quarter 2024 revenues are likely to have gained from improved segmental performance.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Rollins (ROL), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
The ROL stock is benefiting from cross-selling opportunities facilitated by its operating platform and acquisitions expanding its global reach.
ROL excels with strong demand, acquisitions, global expansion and consistent dividends, driving robust revenue growth.
Trading at 43 times free cash flow, most investors would dismiss the notion of buying Rollins. Here's why I'm happy to buy the steady-Eddie business after its recent dip.
I reiterate my buy rating for ROL due to solid organic growth, strong demand, and effective strategic initiatives driving EBITDA margin expansion. 3Q24 earnings showed 7.7% organic revenue growth, beating management's guidance but missing EPS consensus due to growth investments. Despite a temporary EBITDA margin contraction, ROL's pricing power and operational efficiency initiatives should drive future margin expansion.
I reiterate a “Buy” rating on Rollins, Inc. with a fair value of $65 per share, driven by solid growth and modernization efforts. Rollins achieved 7.7% organic revenue growth despite disruptions from Hurricane Helene, highlighting their resilience and consistent performance. The company focuses on modernization, IT upgrades, and margin improvement, anticipating 3%-4% price increases and 7%-8% organic revenue growth in FY24.