Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Rollins (ROL) Gains From Top-Line Strength Amid Expense Woes

By Zacks Investment ResearchStock MarketsMar 03, 2021 10:38PM ET
www.investing.com/analysis/rollins-rol-gains-from-topline-strength-amid-expense-woes-200564998
Rollins (ROL) Gains From Top-Line Strength Amid Expense Woes
By Zacks Investment Research   |  Mar 03, 2021 10:38PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Rollins (NYSE:ROL), Inc. ROL is currently benefiting from a balanced approach to organic and inorganic growth.

The company recently reported better-than-expected fourth-quarter 2020 results. Adjusted earnings of 13 cents per share came ahead of the Zacks Consensus Estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.

The company’s shares have gained 19.6% in the past year, underperforming the 20.5% rally of the industry it belongs to.

Top Line is in Good Shape

Demand environment for this building maintenance servicer remains in good shape driven by decent construction activity. A balanced approach to organic and inorganic growth has been benefiting the company’s revenues that have increased at a compounded annual growth rate of 6.6% over the past five years.

Rollins, Inc. Revenue (TTM)

Enhancing benefits are expected to improve employee and customer retention for the upcoming years, driving organic growth. Further, with the help of strategic acquisitions, the company continues to expand its global brand recognition and geographical footprint, while also boosting revenues. Rollins completed 31 acquisitions in 2020. It made 30 acquisitions in 2019 and 38 in 2018.

Costs Stay High

Rollins is witnessing escalation in costs, resulting from acquisitions and IT-related expenses. Notably, sales, general and administrative expenses increased 2.8% year over year in fourth-quarter 2020 and 5.3% in full-year 2020. So, the company's bottom line is likely to remain under pressure going forward.

Zacks Rank and Stocks to Consider

Rollins currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Business Services sector are Omnicom OMC, Gartner (NYSE:IT) IT and TeleTech Holdings TTEC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Omnicom Gartner and TeleTech is pegged at 4.7%, 13.5% and 14.7%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicom Group Inc. (NYSE:OMC): Free Stock Analysis Report

TeleTech Holdings, Inc. (TTEC): Free Stock Analysis Report

Gartner, Inc. (IT): Free Stock Analysis Report

Rollins, Inc. (ROL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
Rollins (ROL) Gains From Top-Line Strength Amid Expense Woes
 

Related Articles

Rollins (ROL) Gains From Top-Line Strength Amid Expense Woes

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email