The Memphis-based company reported adjusted third-quarter preliminary earnings of 24 cents a share on revenue of $528 million, a 7% year over year increase. Analysts, however, were expecting earnings of 37 cents a share on revenue of $531.2 million.
ServiceMaster shares tumbled 15.9% to $47.22 on Tuesday.
"While I am disappointed in our third-quarter profitability, I remain encouraged with the meaningful progress we continue to make on our plan to further strengthen the service delivery model in our Terminix business segment," said CEO Nik Varty.
The company said it was addressing the issues that impacted profitability in the quarter, including the timing of legacy issues that it said weighed on its results.
ServiceMaster will release its full third-quarter results on Nov. 5.
Save 57% during our Halloween Sale. Don't let this market haunt you and join Jim Cramer's Investment Club, Action Alerts PLUS. Click here to sign up!