Rollins Q3 revenue slightly misses estimates as customer acquisition pressures persist

Rollins

Yesterday 21:17

Overview
US pest control services provider's Q3 revenue grew 6.2% yr/yr, slightly missed analyst expectations
Adjusted EPS for Q3 met analyst consensus
Adjusted EBITDA for Q3 declined and missed analyst estimates

Outlook
Company sees evolving customer acquisition landscape requiring ongoing adaptation
Rollins plans continued investment in M&A, dividends, and share repurchases

Result Drivers
RESIDENTIAL CUSTOMER ACQUISITION - Co said residential customer acquisition remained under pressure in Q3, prompting changes in marketing strategy
MARGIN PRESSURE - Co reported lower operating margin yr/yr, indicating increased cost pressures

Company press release: ID:nPnb7cLSYa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$1.10 bln
$1.11 bln (13 Analysts)
Q3 Adjusted EPS
Meet
$0.34
$0.34 (14 Analysts)
Q3 EPS
 
$0.33
 
Q3 Net Income
 
$158 mln
 
Q3 Adjusted EBITDA
Miss
$257 mln
$260.52 mln (13 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Rollins Inc is $36.00, about 8% above its October 20 closing price of $33.34
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads
Oct 21 - Healthcare Services Group slightly misses Q3 revenue estimates, raises 2027 outlook
Oct 19 - Accounting firm CBIZ Q3 revenue, adj EPS miss analyst estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)