Rentokil shares sink on North America warning
Rentokil Initial shares slid some 15% after some less-than-appetising projections for its North America market. IGTV financial analyst @AngelineOng looks at the guidance from Rentokil and its purchase of Terminix.
(Video Transcript)
Rentokil shares plummet 15%
Rentokil shares are heading south as we speak: quite a huge fall there of more than 15%. Just checking in on the daily chart for you, see that red candle there, 15.6% to be exact. And this comes after Rentokil initially warned of weakness in its biggest market: North America.
It says it's expected to miss its prior expectations and said that there's quite a bit of near-term market uncertainty. And it's adjusted its operating profit margin for North America of 18.5% to 19% down from its previous guidance of around 19.5%.
North America’s pest-control giant
Now why this is key is because this region alone accounts for nearly half of Rentokil’s revenues in 2022. And investors will want to know that it has some sort of comeback quite soon.
Don't forget, for those of you who have been watching this space, Rentokil did swallow up Terminix in the last year or so, which now makes it the biggest pest control provider in North America.
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