Buy Rollins at $26-$29 after Wall Street Ignores Robust Quarter

 

Rollins (NYSE: ROL) beat revenue estimates in its quarterly earnings (for the period ending March)  report released this morning, though profits were in line at 15 cents per share. Despite the good news, and its recent important acquisitions, shares held steady in early trading. 

This is a great opportunity to buy the pest control services company – especially with the Zika virus threat looming over the United States as described in my Sector Spotlight article, along with a heavier-than-expected spring storm season and what could be a humid summer. 

Rollins reported revenues up 6.6% year-over-year to $352.7 million, versus analyst consensus of $345.3 million.

The company has been on an acquisitions binge of late. Most recently it acquired two Critter Control franchises, companies that specialize in rodent and other large animal pests. Rollins owns the Orkin LLC pest control brand and has operations in the United States, Canada and Australia. 

Disclosure: I own shares in Rollins.

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