Analyst Estimates: Here's What Brokers Think Of Rollins, Inc. (NYSE:ROL) After Its First-Quarter Report

Investors in Rollins, Inc. (NYSE:ROL) had a good week, as its shares rose 4.3% to close at US$44.27 following the release of its quarterly results. It looks like the results were a bit of a negative overall. While revenues of US$748m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit US$0.19 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rollins after the latest results.

See our latest analysis for Rollins

After the latest results, the eleven analysts covering Rollins are now predicting revenues of US$3.36b in 2024. If met, this would reflect a credible 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.2% to US$0.98. In the lead-up to this report, the analysts had been modelling revenues of US$3.35b and earnings per share (EPS) of US$1.01 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at US$44.96, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Rollins at US$52.00 per share, while the most bearish prices it at US$34.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.5% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So it's pretty clear that Rollins is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rollins. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$44.96, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Rollins. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Rollins going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Rollins' balance sheet, and whether we think Rollins is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.