Earnings Outlook For Rollins

Rollins ROL announces its next round of earnings this Wednesday, January 27. Here is Benzinga's look at Rollins's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Rollins EPS will likely be near $0.13 while revenue will be around $530.20 million, according to analysts. In the same quarter last year, Rollins posted EPS of $0.16 on sales of $505.99 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 18.75% decrease in the company's earnings. Revenue would be up 4.79% from the same quarter last year. Rollins's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Over the last 52-week period, shares of Rollins are up 43.37%.

Do not be surprised to see the stock move on comments made during its conference call. Rollins is scheduled to hold the call at 10:00:00 ET and can be accessed here.