Rollins (NYSE: ROL) reported third-quarter financial results on Oct. 25.
Flood conditions in multiple states forced Rollins to temporarily close more than 50 of its branches, but the resulting damage may lead to even greater demand for the company's pest management services in the quarters ahead.
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Rollins results: The raw numbers
What happened with Rollins this quarter?
Revenue rose 6.2% year over year to $450.4 million, with 3.9% coming from pricing and organic growth, and the remaining 2.3% from acquisitions.
Rollins saw broad-based growth across its business lines; residential pest control revenue rose 6.1%, commercial pest control sales grew 4.9%, and termite revenue jumped 10.1%.
However, Rollins' results were dented by recent storms, as explained by CEO Gary Rollins during a conference call with analysts:
All told, net income increased 3.6% to $51.4 million, and earnings per share increased 4.3% to $0.24.
While these storms were a major headwind to Rollins' business in the third quarter, they're also leading to some new opportunities, as noted by COO John Wilson:
CFO Paul Northen added:
Thus, recent (and future) storms appear likely to increase longer-term demand for Rollins' pest control services.
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