Rollins slides after UK's Rentokil warns of N.America weakness

Rollins

19/10/2023 11:22

** Pest control company Rollins'  ROL.N  shares fall 5.3% to
$34.0 premarket 
   ** British peer Rentokil Initial's shares  RTO.L  slump 15.5%
after the company warns of weakness in its biggest market North
America, citing "near-term market uncertainty"
    ** RTO forecasts annual adj. operating margin of 18.5%-19%
for North America vs previous guidance of about 19.5%; The
region accounted for nearly half of its revenue in 2022
    ** Spruce Point Capital Management said earlier this month
it was short on Rollins on concerns over cash flow and leveraged
acquisitions; warned stock could fall 30%-40%
    ** ROL down 1.7% YTD 

 (Reporting by Sruthi Shankar)
 ((sruthi.shankar@thomsonreuters.com;))