Slower residential demand - Co said slower growth in residential pest control, especially brands reliant on consumer-initiated demand through digital channels, weighed on results
Relationship-based channels - Relationship-based channels such as home builders and door-to-door sales delivered solid organic growth
Margin pressure - Margin performance was below expectations as demand softened while cost structure remained set for stronger growth
Quarterly results
US pest control firm's Q2 revenue rose 7.9%, slightly beating analyst expectations
Q2 adjusted EBITDA missed analyst estimates
Company cites slower residential demand and margin pressure, but notes late-quarter improvement in leads
Outlook and analyst coverage
Company remains cautious on near-term demand trends due to softer lead volume
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Rollins Inc is $55.50, about 26.5% above its July 21 closing price of $43.86
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