Rollins Reports Third-Quarter Earnings Miss

(Reuters) – Pest control firm Rollins (NYSE:ROL) 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% to $47.15 after the bell.

Higher product pricing has pushed price-sensitive consumers, who are 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.

(This story has been refiled to remove an extraneous word in paragraph 1)