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Rollins posts third-quarter profit miss on rising costs, slowing demand; shares fall
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Rollins posts third-quarter profit miss on rising costs, slowing demand; shares fall
Oct 24, 2024 10:23 AM

Oct 23 (Reuters) - Pest control firm Rollins Rollins

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.

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