Shares of Rollins declined after second-quarter profit and revenue came in short of Wall Street's expectations, with the company noting slower growth in parts of its residential pest control business.
The stock slid 14% to $37.25 in after-hours trading on Wednesday. At market close, shares were down 28% year to date.
The company said demand trends softened during the quarter, leading to worse-than-expected margins.
Chief Executive Jerry Gahlhoff, Jr. pointed to a slowdown particularly for its residential pest control brands that rely on consumer-initiated demand through search, digital media and inbound calls, noting lead volume declined in the quarter.
Meanwhile, areas of the business that depend more on relationship-based channels, like home builders and door-to-door sales, delivered solid organic growth in the quarter, he said.
The company posted a profit of $143.9 million, or 30 cents a share, compared with $141.5 million, or 29 cents a share, a year earlier.
Adjusted earnings per share were 32 cents, missing estimates of 34 cents a share according to analysts polled by FactSet.
Revenue rose 7.9% to $1.08 billion, compared with analyst estimates of $1.09 billion.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
July 22, 2026 18:50 ET (22:50 GMT)
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