On Wednesday, Rollins (NYSE: ROL), the pest control firm, missed Wall Street expectations for third-quarter profits, 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 3.54% at $47.99 in the pre-market trading.
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
Rollins (NYSE: ROL) 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.
However, the company’s quarterly revenue rose 9% to $916 million, compared to analysts’ estimates of $911.15 million.
(Source: ReutersReuters)
