Why Shares of Rentokil Plummeted Today
Shares of global pest control and hygiene service provider Rentokil Initial (NYSE: RTO) have plummeted 20% as of 1:45 p.m. ET Wednesday, according to data provided by S&P Global Market Intelligence.
Providing a trading update earlier this morning, Rentokil warned that its organic revenue growth in North America for the second half of 2024 would only equal roughly 1%, missing management's previous guidance for 2% to 4%.
While this one percentage point miss from the low end of management's guidance may not seem alarming, Rentokil's North American operations account for 60% of the company's total revenue and operating profit. Making matters worse, this North American unit has been an area of intense focus for management following Rentokil's $6.7 billion acquisition of Terminix in 2022, which launched the company's growth plans for the continent full speed ahead.
Source Fool.com
