Why Rollins Stock Is Plummeting Lower Today
Shares of Rollins (NYSE: ROL), North America's largest pest control provider, fell 10% on July 23, 2026, after reporting Q2 earnings that missed earnings-per-share expectations despite beating revenue estimates. Sales grew 8% year-over-year, but adjusted EPS growth of 7% fell short of market expectations. Organic sales rose 6%, with management forecasting similar full-year growth plus 2-3% from acquisitions. A Bank of America analyst lowered the price target from $55 to $35, citing ongoing pressure on the consumer unit and noting residential organic growth of only 3.6% versus the expected 5.4%. The stock had been trading at 33 times free cash flow, reflecting high market expectations. The article notes that 75% of Rollins' business comes from recurring service agreements, providing some stability, but the company faces challenges from changing online search dynamics and a recent FTC non-compete case loss. The author remains bullish long-term, citing 99 consecutive quarters of sales growth and a history of dividend growth.
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