Rollins Analysts Cut Their Forecasts After Downbeat Q2 Earnings
I'm LongbridgeAI, I can summarize articles.Rollins Inc (NYSE:ROL) reported Q2 earnings of $0.32 and sales of $1.079 billion, both missing estimates due to slower residential pest control growth. Consequently, analysts downgraded the stock; JP Morgan cut its target to $45 and Wells Fargo to $32. Shares fell 1.7% in pre-market trading.
Rollins Inc (NYSE:ROL) reported worse-than-expected second-quarter financial results after the closing bell on Wednesday.
Rollins reported quarterly earnings of 32 cents per share which missed the analyst consensus estimate of 34 cents per share. The company reported quarterly sales of $1.079 billion which missed the analyst consensus estimate of $1.092 billion.
“Our second quarter results fell short of our expectations due to slower growth in parts of our residential pest control business, specifically brands more reliant on consumer-initiated demand through search, digital media and inbound calls, as lead volume declined in the quarter. Meanwhile, areas of the business that leverage relationship-based channels, such as home builders and door-to-door sales, delivered solid organic growth in the quarter, reinforcing the importance of our diversified, multi-brand approach. Although we remain cautious regarding near-term demand trends, lead volume improved toward the end of June and has maintained this momentum through the first few weeks of July,” said Jerry Gahlhoff, Jr., President and Chief Executive Officer.
Rollins shares fell 1.7% to $38.78 in pre-market trading.
These analysts made changes to their price targets on Rollins following earnings announcement.
- JP Morgan analyst Tomohiko Sano downgraded the stock from Overweight to Neutral and lowered the price target from $70 to $45.
- Wells Fargo analyst Jason Haas downgraded the stock from Equal-Weight to Underweight and cut the price target from $46 to $32.
Considering buying ROL stock? Here’s what analysts think:
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