Rollins exceeds revenue estimates bolstered by high pest control demand
April 24 (Reuters) -Rollins ROL.N topped market expectations for first-quarter revenue on Wednesday, helped by pricing actions and as demand for its pest control services held steady despite tough macroeconomic conditions in the United States.
With rising global warming, demand for pest control is expected to bump up from both households and commercial establishments as pests tend to thrive in warmer temperatures.
The Orkin-parent's revenue for the three months ended March 31 rose about 14% to $748.3 million, compared with analysts' average estimate of $739.1 million, according to LSEG data.
Atlanta, Georgia-based Rollins has also been hiking prices for its services over the past year to offset costs tied to labor, materials and supplies.
"We are well positioned for continued growth in 2024, both organically as well as through acquisitions, and remain focused on continuous improvement initiatives to enhance profitability across our business," CEO Jerry Gahlhoff said.
Rollins' adjusted profit per share for the quarter was 20 cents, in line with market expectations.
Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Alan Barona
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