Support for Rollins Acquisitions (ROL), increased spending

0

Rollins, Inc. ROL is a consistent dividend payer with a balanced approach to organic and inorganic growth. Shares of ROL have gained 7% in the past year against the 0.7% decline of the industry to which it belongs.

Image source: Zacks Investment Research

Rollins recently reported impressive results for the first quarter of 2022, with earnings and revenue beating Zacks’ consensus estimate. Adjusted earnings of 15 cents per share beat Zacks’ consensus estimate and prior-year figure by 7.1%. Revenue of $590.7 million topped the consensus mark of 2.8% and improved 10.3% year over year.

How’s Rollins?

Rollins’ earnings have seen decent growth over the past five years. A balanced approach to organic and inorganic growth profiles is key to its success. ROL’s organic revenue growth rate is healthy, driven by strong technician and customer retention. The enhanced benefits should improve employee and customer retention for years to come.

Acquisitions are an important catalyst for Rollins’ business development. With the help of strategic buyouts, ROL continues to expand its global brand awareness and geographic footprint, while growing its revenue. During the first quarter of 2022, he made eight purchases. Over the past three years, Rollins has closed nearly 100 deals, including 39 in 2021. Last year, ROL saw revenue growth from its operations in Canada, Australia, the UK and Singapore. Its global network offers many growth opportunities to access new markets.

Rollins is also consistent in rewarding its shareholders through the payment of dividends. Such concerted efforts not only instill investor confidence in the stock, but also bolster its earnings per share. In the first quarter of 2022, ROL paid $49.2 million in dividends. Dividends amounting to $208.7 million, $160.5 million and $153.8 million were paid in 2021, 2020 and 2019, respectively.

However, Rollins continues to witness escalating costs resulting from acquisitions and IT-related expenses. During the March 2022 quarter, operating expenses of $499.01 million increased 11.5% year over year.

Zacks Ranking and Stocks to Consider

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

Some higher ranked stocks within the broader business services sector are Cross Country Health Care CCRN, Georgiartner that and Budget Reviews CAR, each sporting a Zacks rank #1 at present.

Cross Country Healthcare has an expected profit growth rate of 54.2% for the current year. CCRN has a surprise on earnings for the last four quarters of 29.2% on average.

Cross Country Healthcare has a long-term earnings growth rate of 6.9%.

Gartner shares are up 10.6% over the past year. IT has generated a surprise on the profits of the last four quarters of 24.2% on average.

Gartner’s Zacks consensus estimate for earnings for the current year is up 13.6% over the past 90 days.

Avis Budget forecasts a profit growth rate of 59.8% for the current year. CAR recorded a four-quarter earnings surprise of 102.1%, on average.

Avis Budget has a long-term earnings growth rate of 19.4%.

Just Released: The Biggest Tech IPOs of 2022

For a limited time, Zacks reveals the most anticipated tech IPOs set to launch this year. Worries over federal interest rates and inflation have kept many private companies on the bench, leading companies with better brand recognition and higher growth rates to enter the game. With the strength of our economy and record amounts of money pouring into IPOs, you don’t want to miss this opportunity. See the full list today.

>> See Zacks’ Hottest IPOs Now

Click to get this free report

Avis Budget Group, Inc. (CAR): Free Inventory Analysis Report

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

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

Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.