Rollins posts third-quarter profit miss on rising costs, slowing demand; shares fall
23/10/2024 21:53
Oct 23 (Reuters) - Pest control firm Rollins Rollins
ROL.N missed Wall Street expectations for third-quarter
profits on Wednesday, as customers reduced spending on
non-essential services.
Shares of the company which offers pest control services
including termite, bed bug, and rodent infestation treatment,
fell nearly 5.23% at $47.15 after the bell.
Higher product pricing has pushed price-sensitive consumers,
already facing increased rental and food costs, to reconsider
their purchase decisions.
This trend, combined with increased marketing and
advertising efforts to attract customers, dented its margins,
resulting in a 90 basis point decline in its third-quarter
adjusted gross margins. Sales, general and administrative
expenses of the company rose about 12% to $275 million
The Atlanta, Georgia-based company's adjusted profit per
share for the quarter ended Sept. 30 was 28 cents, compared to
analysts' consensus estimate of 30 cents per share, according to
data compiled by LSEG.
The company's quarterly revenue, however, rose 9% to $916
million, compared to analysts' estimates of $911.15 million.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim
Zahid)
((Neil.JKanatt@thomsonreuters.com;))