NYSE$ROL

Rollins Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Rollins reported a strong third quarter with record revenue and an improving margin profile, driven by a 15% increase in revenue and healthy organic growth.

Rollins, Inc. reported strong third-quarter 2023 financial results, with a 15.2% increase in revenue to $840 million. The company saw improvements in GAAP EPS (18%) and Adjusted EPS (27%). Organic revenues increased by 8.4%.

  • Third quarter revenues increased by 15.2% to $840 million, with organic revenues increasing 8.4%.
  • Operating income increased by 21.8% to $177 million, with an operating margin of 21.1%.
  • EPS increased by 18.2% to $0.26 per diluted share, and Adjusted EPS increased by 27.3% to $0.28 per diluted share.
  • Adjusted EBITDA increased by 22.7% to $209 million.

Headline financials

Total Revenue

$840M

Previous: $730M+15.2%
EPS (adj)

$0.28

Previous: $0.22+27.3%
Operating Margin

21.1%

Previous: 19.7%+7.1%
Adjusted EBITDA

$209M

Previous: $170M+22.7%
Adjusted EBITDA Margin

24.8%

No prior period
Capital Expenditures

-$21.3M

Previous: -$22.9M+7.2%
Free Cash Flow

$106M

Previous: $84.7M+25.7%
Net Income

$128M

Previous: $108M+18.7%
Operating Income

$177M

Previous: $144M+23.3%
Gross Profit

-$413M

Previous: -$372M-10.9%
Cash & Equivalents

$142M

Previous: $122M+16.7%
Total Assets

$2.64B

Previous: $2.11B+25.0%
Stock-Based Comp

$6.1M

Previous: $4.96M+23.0%

Revenue & EPS history

Rollins · Revenue · Quarterly

$840M

Q3 2023+15.2%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Rollins · $677M total across 2 segments · Q3 2023

  • Residential Revenue
    $404M+19.7%
  • Commercial Revenue
    $272M+11.8%

Forward guidance

Rollins is well positioned for continued growth, both organically and through acquisitions, and remains focused on continuous improvement initiatives to enhance profitability across its business. The company continued to execute a very balanced capital allocation program with a focus on investing for growth while returning cash to shareholders through a growing dividend and a share repurchase program.

Tailwinds

  • Healthy organic growth
  • Active on the acquisition front
  • Solid demand for services
  • Robust pipeline for acquisitions
  • Focused on continuous improvement initiatives

Headwinds

  • Failure to maintain and enhance brands
  • Actions taken by franchisees, subcontractors or vendors that may harm business
  • General economic conditions
  • Potential increases in labor costs
  • Labor shortages and/or inability to attract and retain skilled workers

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+14.1%

Q3 2022

Best reaction

-11.5%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+0.8%-3.3%
Q4 2025-10.5%-8.4%-16.0%
Q3 2025+7.3%+10.7%+14.1%
Q1 2025+1.0%+2.6%+3.5%
Q4 2024+3.6%-0.2%+2.6%
Q3 2024-6.2%-4.6%+2.2%
Q2 2024-6.4%-4.7%+0.4%
Q1 2024+3.8%+5.0%+8.3%
Q4 2023-4.9%-6.4%+5.7%
Q3 2023+6.1%+9.5%+19.2%
Q2 2023-8.9%-8.9%-12.2%
Q1 2023+4.7%+3.9%-1.0%
Q4 2022+1.5%+1.9%+1.2%
Q3 2022+14.1%+17.1%+11.3%
Q2 2022+6.5%+8.0%-4.8%
Q1 2022+5.2%+1.5%+11.9%
Q4 2021-7.3%-1.3%+2.8%
Q3 2021-11.5%-13.0%-9.8%
Q2 2021+1.8%+3.7%+3.9%
Q1 2021+4.0%+5.1%-5.1%
Q4 2020-2.9%-2.2%-10.4%
Q3 2020-0.2%-1.9%-3.8%
Q2 2020+5.7%+8.4%+12.6%
Q1 2020-1.7%+0.0%+2.8%
Q4 2019+4.0%+4.8%+1.9%
Q3 2019+7.3%+5.6%-1.4%
Q2 2019-10.8%-11.2%-16.2%
Q1 2019-10.6%-11.1%-15.4%
Q4 2018-1.6%-2.7%+2.7%
Q3 2018+0.6%+1.7%+6.3%
Q2 2018+1.2%-1.6%+5.7%
Q1 2018-3.0%-4.3%-1.1%
Q4 2017+5.5%+4.9%+6.9%
Q3 2017-6.6%-8.3%-4.1%
Q2 2017+4.0%+4.3%+7.6%
Q1 2017+2.7%+2.8%+13.0%
Q4 2016+4.8%+3.8%+8.9%
Q3 2016+9.1%+9.5%+15.8%
Q2 2016-4.6%-3.3%-3.7%
Q1 2016+0.4%
Q4 2015-0.3%
Q3 2015-0.7%
Q2 2015+3.3%
Q1 2015-1.6%
Q4 2014+1.0%
Q3 2014+3.1%
Q2 2014+0.7%
Q1 2014+0.0%
Q4 2013+2.0%
Q3 2013+0.2%
Q2 2013-5.8%
Q1 2013+1.4%
Q4 2012+1.7%
Q3 2012+0.9%
Q2 2012+3.9%
Q1 2012+2.4%
Q4 2011-2.6%
Q3 2011-7.1%
Q2 2011-0.7%
Q1 2010-0.7%
Q1 2011+2.3%
Q4 2008+2.7%
Q4 2010+2.7%
Q3 2009-0.2%
Q3 2010-0.2%
Q2 2010+0.5%
Q2 2009+0.5%
Q4 2009+0.5%

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