Rollins, Inc. reported second-quarter revenue of US$1.08 billion, up 7.9% year on year but below analyst forecasts, with EBITDA and EPS also falling short of expectations. The company posted net income of US$143.91 million and diluted EPS of US$0.30, both only slightly above last year's levels. CEO Jerry E. Gahlhoff and CFO William W. Harkins discussed the results at the U.S. All Stars Conference in London, where the miss sharpened investor focus on how efficiently Rollins converts revenue into profitability. The shortfall puts added weight on management's efficiency efforts and M&A discipline, given the company's high debt and dependence on acquisitive growth to support its multi-brand pest control model. Rollins' narrative projects US$5.0 billion revenue and US$732.6 million earnings by 2029, while more cautious analysts assume only about 7.2 percent annual revenue growth to US$4.8 billion and earnings of roughly US$698 million by 2029.
Rollins IncQ2 revenue rose 7.9% but missed analyst forecasts, with EBITDA and EPS also falling short of expectations.
