Pest control firm Rollins tops quarterly sales estimates on robust demand for services

July 23 (Reuters) - Rollins ROL.N reported second-quarter revenue above estimates on Wednesday, on steady demand for its pest control services amid an unusually warm and dry weather in the United States.

WHY IT'S IMPORTANT

A warmer-than-usual climate across much of the United States, which has created ideal conditions for insect breeding, has driven increased demand for pest control services at homes and businesses, even as an uncertain macroeconomic environment has constrained consumer spending.

The National Pest Management Association (NPMA), in a March report, said that early warmth and dry spells have accelerated pest activity, particularly in the South, Midwest and Northeast regions of the country.

KEY QUOTE

"EBITDA margins were pressured from developments on legacy auto claims by 70 basis points in the quarter," CFO Kenneth Krause said.

BY THE NUMBERS

The company's revenue for the quarter ended June 30 rose 12.1% to $999.5 million, beating analysts' average estimate of $989.1 million, according to data compiled by LSEG.

The Atlanta, Georgia-based company's adjusted profit per share was at 30 cents, in line with analysts' estimates.

Adjusted operating margin was 20.6%, a decrease of 30 basis points compared to the prior year.