A Look Back at Environmental and Facilities Services Stocks’ Q1 Earnings: Rollins (NYSE:ROL) Vs The Rest Of The Pack
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As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the environmental and facilities services industry, including Rollins (NYSE:ROL) and its peers.
Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services.
The 13 environmental and facilities services stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.2% below.
Thankfully, share prices of the companies have been resilient as they are up 6.9% on average since the latest earnings results.
Rollins (NYSE:ROL)
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Rollins reported revenues of $822.5 million, up 9.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
The stock is up 6.3% since reporting and currently trades at $58.34.
Is now the time to buy Rollins? Access our full analysis of the earnings results here, it’s free.
Best Q1: Aris Water (NYSE:ARIS)
Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions.
Aris Water reported revenues of $120.5 million, up 16.5% year on year, outperforming analysts’ expectations by 6.5%. The business had a stunning quarter with a solid beat of analysts’ sales volume and EBITDA estimates.
Aris Water pulled off the biggest analyst estimates beat among its peers. The market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $24.16.
Is now the time to buy Aris Water? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Perma-Fix (NASDAQ:PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.