Shares of pest control company ServiceMaster (SERV) - Get ServiceMaster Global Holdings, Inc. Report were down double digits after the company reported preliminary third-quarter results that fell well below analysts' expectations.
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.
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