Rollins Q3 revenue slightly misses estimates as customer acquisition pressures persist

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:

Key Details

*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

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(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.)