On July 23, Rollins fell 16.06% in after-hours trading, trading at approximately $36.62/share, with turnover of $7.68 million. The sharp decline was triggered by the company's Q2 earnings report that missed Wall Street expectations on both revenue and profit.
Specifically, Rollins reported Q2 adjusted earnings of $0.32 per share, missing the analyst consensus estimate of $0.34 by approximately 5.9%. Revenue came in at $1.079 billion, below the expected $1.092 billion. While both figures represented year-over-year growth — EPS up 6.7% from $0.30 and revenue up from $999.5 million — the results fell short of market expectations. Adjusted operating margin declined from 20.6% a year ago to 19.5%, indicating clear margin pressure. The CEO attributed the shortfall primarily to slowing growth in the residential pest control business segment.
Notably, this marks the second consecutive quarter of misses for Rollins, following its Q4 report in February when the stock also dropped sharply after EPS of $0.25 missed the $0.27 estimate and revenue of $912.9 million trailed the $926.8 million forecast.
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