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Rollins beats revenue estimate as warm weather drives demand for pest control
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Rollins beats revenue estimate as warm weather drives demand for pest control
Feb 12, 2025 2:19 PM

Feb 12 (Reuters) - Rollins beat analysts'

estimate for fourth-quarter revenue on Wednesday, benefiting

from robust demand for its pest control services as customers

looked to tackle termite and insect infestations during an

unusually warm and dry period.

WHY IT'S IMPORTANT

Warm weather across the United States, continuing a streak

of extreme global temperatures, has created a favorable breeding

atmosphere for insects, resulting in the need for more pest

control at homes and businesses.

This, coupled with an increase in new home sales, has aided

demand for residential pest and termite services.

KEY QUOTE(S)

"As we look to 2025, demand for our services is solid and

our pipeline for acquisitions is robust. We invested

meaningfully in our business throughout 2024, which accelerated

organic growth in the second half of the year," CEO Jerry

Gahlhoff said.

BY THE NUMBERS

The company's fourth-quarter revenue rose 10.4% to $832.2

million, beating analysts' average estimate of $817.6 million,

according to data compiled by LSEG.

Atlanta, Georgia-based Rollins' adjusted profit per share

came in at 23 cents, in line with the estimate.

Its quarterly adjusted operating income margin fell 50 basis

points to 18.6%, owing to increased marketing and advertising

investments to bring in more customers.

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