Rollins, Inc. ROL is scheduled to report its first-quarter 2025 results on April 23, after the bell.
ROL’s earnings surprise history has not been impressive. Earnings lagged the Zacks Consensus Estimate in one of the trailing four quarters and matched thrice, with an average negative surprise of 0.8%.
Q1 Expectations
The Zacks Consensus Estimate for the top line is pegged at $816.2 million, suggesting 9% growth on a year-over-year basis. Improved commercial, residential, and termite and ancillary services revenues are expected to have benefited the company’s revenues in the to-be-reported quarter.
Our estimate for Residential revenues is pegged at $365.3 million, indicating 10.9% growth from the year-ago quarter. Commercial revenues are anticipated to increase 6.4% year over year to $274.7 million. We expect revenues from Termite Completions, Bait Monitoring & Renewals to be pegged at $156.4 million, suggesting 5.1% growth on a year-over-year basis. Franchise revenues are estimated at $4.1 million, up 2.8% from the year-ago quarter’s actual.
The Zacks Consensus Estimate for adjusted EPS is pegged at 22 cents, implying an increase of 10% from the year-ago quarter’s actual. A rise in revenues across the segments and strong margins are anticipated to have benefited the bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ROL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.
ROL has an Earnings ESP of 0.00% and a Zacks Rank of 3. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Booz Allen Hamilton BAH: The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2025 revenues is pegged at $3 billion, implying an 8.9% increase from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $1.59 per share, suggesting a 19.6% rise from the year-ago quarter’s actual. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 6.7%.
BAH has an Earnings ESP of +5.74% and currently flaunts a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Waste Connections WCN: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $2.2 billion, indicating a year-over-year 7.1% rise. For earnings, the consensus mark is pegged at $1.07 per share, suggesting a 2.9% rise from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 1.9%.
WCN currently carries an Earnings ESP of +1.84% and a Zacks Rank of 3.
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Waste Connections, Inc. (WCN): Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report
Rollins, Inc. (ROL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).