Rollins beats revenue estimates on strong pest control demand
25/10/2023 22:37
Oct 25 (Reuters) - Rollins ROL.N on Wednesday beat
Wall Street expectations for third-quarter revenue, helped by
strong demand for its pest control services.
The Orkin-parent has hiked prices of its products and
services, as it looked to tackle higher cost of labor, which
constitutes a majority of the company's expenses.
With global temperatures rising, pest control services are
expected to benefit from greater demand from both households as
well as commercial establishments.
"As we look to close out 2023, we are well positioned for
continued growth, both organically, as well as through
acquisitions," CEO Jerry Gahlhoff said.
The company's quarterly results are in contrast to
U.K.-based Rentokil RTO.L , which warned of weak demand in
North America as tougher macroeconomic conditions dented
acquisition of new residential customers.
Rollins' revenue rose 15.2% to $840 million for the quarter
ended Sept. 30, compared with analysts' estimates of $826.2
million, according to LSEG data.
Profit per share came in at 26 cents, up from 22 cents a
year earlier. Adjusted operating income margin rose 240 basis
points to 22.3%.
(Reporting by Juveria Tabassum and Akash Sriram in Bengaluru;
Editing by Shailesh Kuber)
((Juveria.Tabassum@thomsonreuters.com;))