Pest-Controller Rentokil Sinks 20% on Earnings Slowdown
- Stock sinks 20% in London after North-America growth warning
- Trian’s Nelson Peltz bought stake in pest controller this year
Rentokil Initial Plc shares plunged in London, erasing more than 2 billion pounds ($2.6 billion) in market value, after the pest-control company lowered growth expectations for its business in North America.
Organic revenue growth in the region will slow to about 1% in the second half, following a weaker-than-anticipated trading performance in July and August. The update suggests consensus estimates for adjusted pretax profit will need to be cut by 10%, Morgan Stanley analyst Annelies Vermeulen wrote in a note to clients.