Rollins misses quarterly estimates on weaker demand for pest control services

Feb 11 (Reuters) - Rollins ROL.N missed Wall Street fourth-quarter estimates on Wednesday, as consumers reduced spending on pest control services amid ongoing macroeconomic uncertainty, sending its shares down about 14% in after-hours trading.

Persistent inflation and high interest rates have led residential and commercial customers to scale back spending on routine services, pressuring pest-control and maintenance companies after several quarters of steady demand.

Rollins said it also saw a negative impact from erratic weather patterns in the quarter, as cooler weather in the U.S. dampened demand for pest-control activities.

"January has been unusually cold, even in areas that rarely freeze. This could reduce pest activity and potentially create a headwind for the spring selling season if pest populations are lower," UBS analyst Joshua Chan said.

However, peer Ecolab ECL.N earlier in the day projected a profit outlook ahead of Wall Street estimates on strong demand for its cleaning, sanitization and water‑treatment technologies.

Rollins reported quarterly revenue of $913 million for the period ended December 31, missing analysts' average estimate of $926.8 million, according to data compiled by LSEG.

Adjusted profit came in at 25 cents per share, below analysts' expectations of 27 cents per share.

Operating margin for the quarter dropped 60 basis points to 17.5%. The company said it will focus on pricing and ongoing modernization efforts to improve its margin.