Why Is Rollins (ROL) Up 2.5% Since Last Earnings Report?

Core Viewpoint - Rollins, Inc. reported first-quarter 2024 earnings that met estimates, with revenues exceeding expectations, indicating a strong demand environment and potential for growth [2][3]. Financial Performance - Adjusted earnings were 20 cents per share, an increase of 11.1% year over year [2]. - Revenues reached $748.3 million, surpassing the consensus estimate by 2.9% and improving 13.7% year over year [2]. - Organic revenues were $702.4 million, reflecting a year-over-year increase of 7.5% [2]. Revenue Breakdown - Residential revenues increased by 16.5% year over year to $329.3 million, exceeding estimates [4]. - Commercial revenues rose 11.4% year over year to $258.1 million, also surpassing estimates [4]. - Termite and ancillary revenues grew 11.7% year over year to $152 million, beating estimates [4]. Profitability Metrics - Adjusted EBITDA was $161 million, up 19.3% year over year, compared to expectations [5]. - Adjusted EBITDA margin was 21.5%, an increase of 100 basis points year over year [5]. Cash Flow and Debt - Cash and cash equivalents at the end of the quarter were $113 million, up from $103.8 million in the prior quarter [6]. - Long-term debt increased to $510.9 million from $490.8 million [6]. - The company generated $127.4 million in cash from operating activities, with free cash flow at $120.3 million [6]. Market Sentiment and Outlook - Estimates for Rollins have trended upward over the past month, indicating positive market sentiment [7][9]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [9].