US$37.24: That's What Analysts Think Rollins, Inc. (NYSE:ROL) Is Worth After Its Latest Results

It's been a good week for Rollins, Inc. (NYSE:ROL) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.1% to US$34.82. It looks like the results were a bit of a negative overall. While revenues of US$1.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.7% to hit US$0.33 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the 17 analysts covering Rollins are now predicting revenues of US$4.35b in 2027. If met, this would reflect a decent 9.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 10% to US$1.22. In the lead-up to this report, the analysts had been modelling revenues of US$4.43b and earnings per share (EPS) of US$1.26 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Rollins

It might be a surprise to learn that the consensus price target fell 8.7% to US$37.24, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Rollins at US$46.00 per share, while the most bearish prices it at US$26.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Rollins' revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. Compare this to the 153 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while Rollins' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Rollins going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Rollins that you need to be mindful of.

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