Rollins, Inc.’s ROL first-quarter 2025 earnings met the Zacks Consensus Estimate, and revenues beat the same.

Adjusted earnings of 22 cents per share met the consensus estimate and increased 10% year over year. Revenues of $822.5 million topped the consensus mark by 0.8% and improved 9.9% year over year. Organic revenues of $804 million increased 7.4% year over year. Rollins’ performance in the quarter was positively impacted by a healthy demand environment for its services.

Rollins, Inc. Price, Consensus and EPS SurpriseRollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Rollins shares have risen 23.5% in the past year, underperforming the 24.4% growth of the industry.

ROL’s First-Quarter Details

Residential revenues increased 8.2% year over year to $356.3 million but missed our estimate of $365.3 million. Commercial revenues rose 10.2% year over year to $284.4 million and surpassed our estimate of $274.7 million. Termite and ancillary revenues increased 13.2% year over year to $172.1 million and beat our estimate of $156.4 million.

Adjusted EBITDA of $171.9 million increased 6.9% year over year. This compares to our expectation of an adjusted EBITDA of $182.9 million. The adjusted EBITDA margin of 20.9% decreased 60 basis points (bps) year over year compared with our expectation of an adjusted EBITDA margin of 22.7%.

Rollins exited the quarter with a cash and cash equivalent balance of $201.2 million compared with the prior-year quarter’s $113 million. Long-term debt at the end of the quarter was $485.5 million compared with $395.3 million at the end of the prior quarter.

The company generated $147 million in cash from operating activities in the quarter, and the capital expenditure was $6.8 million. Free cash flow came in at $140.1 million. ROL paid dividends worth $80 million in the quarter.

Currently, Rollins carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed first-quarter 2025 results. Earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. Earnings topped the Zacks Consensus Estimate, while revenues missed the mark.

Story Continues

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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