Rollins reports Q1 adjusted EPS 20c, consensus 20c

Reports Q1 revenue $748M, consensus $739.1M. “The team delivered a strong first quarter with double-digit revenue across all major service lines and an improving margin and cash flow profile,” said CEO Jerry Gahlhoff, Jr. “While there was some unfavorable and erratic weather in January compared to last year, we delivered a healthy 7.5% organic growth rate for the quarter. We saw significant improvement moving through the quarter, as organic revenue growth accelerated to over 10% for February and March, with solid performance across our residential, commercial, and termite and ancillary businesses. Demand for our services remains strong and our pipeline for acquisitions is robust. We are well positioned for continued growth in 2024, both organically, as well as through acquisitions, and remain focused on continuous improvement initiatives to enhance profitability across our business”. “It was encouraging to see the strong growth in revenue, profitability, and cash flow in the quarter, as the team delivered healthy revenue growth, 130 basis points of improvement in adjusted operating margins, and a 29% increase in free cash flow in the quarter,” said CFO Kenneth Krause. “We achieved a healthy Q1 gross margin level and saw further leverage in SG&A costs while also making incremental investments in resources and programs to drive growth”.