In the midst of integrating its substantial Terminix acquisition, Rentokil delivered a disappointing update. The company appears to be lagging far behind its leading peer's growth rates.
Rentokil Initial (RTO) shares traded in the U.S. cratered Wednesday after the pest-control company warned that slow sales in North America and negative currency impacts will drag down full-year earnings by 80 million pounds ($104.5 million).
U.S. stocks traded mostly lower midway through trading, with the S&P 500 falling around 0.5% on Wednesday.
Rentokil Initial PLC (LSE:RTO) issued what analysts called a "material profit warning" of surprising scale on Wednesday, raising more concerns about the pest controller's US acquisition of Terminix. The FTSE 100 group said North American organic growth is now expected to be 1% in the second half, and that group profits are now expected to be £700 million for the year due to higher costs from higher spending on sales and services teams.
Activist investor Nelson Peltz's Trian Partners purchased a stake in the pest-control giant in July.
Rentokil Initial PLC (LSE:RTO) warned that sales in North America in the past two months were lower than expected, with profits likely to be hit by higher costs and currency headwinds. Organic revenue growth from the US and Canadian operations is now expected to be around 1% in the second half of the year, down from 2.8% in the first half.
VANCOUVER, BC / ACCESSWIRE / August 13, 2024 / Verisante Technology, Inc. (TSX-V:VER.H) ("Verisante") is pleased to announce that it has entered into a binding Letter of Intent ("LOI") dated August 12, 2024, to acquire a 100% interest in SunRegen Healthcare AG ("SunRegen"), a Swiss pharmaceutical company, by way of a Definitive Share Exchange Agreement which is yet to be negotiated between the parties. The proposed transaction is a Reverse Takeover ("RTO") pursuant to Policy 5.2 of the TSX Venture Exchange and the resulting issuer intends to qualify as a Tier 2 Life Sciences Issuer.
Rentokil Initial PLC (LSE:RTO) is one of the big fallers after its interim results showed progress in North America, a key area of investor concern after it caused last year's profit warning, but management trimmed profit guidance due to extra investment. Revenue for the pest controller rose 1.3% to £2.7 billion or 4% if currency swings are excluded, of which 2.8% was organic.
Rentokil Initial PLC (LSE:RTO) shares surged 13% higher on Monday morning after weekend reports that it might be a takeover target. The royal rat-catcher was reported to be a target for former BT boss Philip Jansen (pictured), who the Sunday Times said is plotting a takeover with the help of private equity firms.
Investors interested in stocks from the Business - Services sector have probably already heard of Rentokil Initial PLC (RTO) and SGS SA (SGSOY). But which of these two companies is the best option for those looking for undervalued stocks?
Investors interested in stocks from the Business - Services sector have probably already heard of Rentokil Initial PLC (RTO) and SGS SA (SGSOY). But which of these two companies is the best option for those looking for undervalued stocks?
Investors with an interest in Business - Services stocks have likely encountered both Rentokil Initial PLC (RTO) and UL Solutions Inc. (ULS). But which of these two stocks is more attractive to value investors?