Earnings Update: Rollins, Inc. (NYSE:ROL) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Rollins, Inc. (NYSE:ROL) had a good week, as its shares rose 5.6% to close at US$44.90 following the release of its quarterly results. Revenues of US$748m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.19, missing estimates by 4.6%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Rollins

Taking into account the latest results, the current consensus from Rollins' ten analysts is for revenues of US$3.37b in 2024. This would reflect a reasonable 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 10% to US$1.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.35b and earnings per share (EPS) of US$1.01 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$45.36, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Rollins, with the most bullish analyst valuing it at US$52.00 and the most bearish at US$35.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Rollins'historical trends, as the 8.7% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So although Rollins is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Rollins analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether Rollins is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.