Rollins, Inc. (NYSE:ROL) reported lower-than-expected first-quarter 2019 results.
Earnings of 14 cents per share missed the Zacks Consensus Estimate by a penny and declined by a penny year over year. The bottom line was negatively impacted by a higher tax rate, strengthening U.S. dollar against foreign currency and professional services expenses associated with buyouts and enhanced employee benefit participation.
Revenues of $429 million missed the consensus mark by $2 million but improved 5% year over year. Weather conditions weighed on the company’s top line as arctic weather and torrential rains caused termites and other pests to remain dormant for the quarter.
Income before income taxes of $56.1 million decreased 5.3% year over year. Net income of $44.2 million declined 8.9%.
Rollins exited the first quarter with cash and cash equivalent balance of $116.6 million compared with $115.5 million in the prior quarter.
We observe that shares of the company have gained 21.2% year to date, underperforming the 24.8% rally of the industry it belongs to.
Zacks Rank & Upcoming Releases
Currently, Rollins carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv (NYSE:APTV) , S&P Global (NYSE:SPGI) and CRA International (NASDAQ:CRAI) . All of them are slated to report on May 2, before market opens.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
S&P Global Inc. (SPGI): Free Stock Analysis Report
Rollins, Inc. (ROL): Free Stock Analysis Report
Charles River Associates (CRAI): Free Stock Analysis Report
Aptiv PLC (APTV): Free Stock Analysis Report
Original post
Zacks Investment Research