Servicemaster Global (NYSE:SERV) Shares Gap Down Following Weak Earnings

Servicemaster Global Holdings Inc (NYSE:SERV) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $38.86, but opened at $44.70. Servicemaster Global shares last traded at $44.94, with a volume of 109,637 shares trading hands.

The business services provider reported $0.31 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.38 by ($0.07). The business had revenue of $528.00 million during the quarter, compared to analyst estimates of $533.63 million. Servicemaster Global had a positive return on equity of 11.17% and a negative net margin of 2.02%. The firm’s revenue was down 39.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.67 EPS.

SERV has been the topic of a number of research reports. Buckingham Research increased their price objective on shares of Servicemaster Global from $53.00 to $61.00 and gave the stock a “neutral” rating in a research note on Thursday, August 22nd. They noted that the move was a valuation call. Zacks Investment Research upgraded shares of Servicemaster Global from a “hold” rating to a “buy” rating and set a $62.00 price objective on the stock in a research note on Wednesday, September 18th. Royal Bank of Canada upgraded shares of Servicemaster Global from a “sector perform” rating to an “outperform” rating and increased their price objective for the stock from $55.00 to $63.00 in a research note on Tuesday, October 8th. Morgan Stanley increased their price objective on shares of Servicemaster Global from $54.00 to $57.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 10th. Finally, ValuEngine upgraded shares of Servicemaster Global from a “hold” rating to a “buy” rating in a research note on Tuesday. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $55.75.

A number of hedge funds and other institutional investors have recently made changes to their positions in SERV. Cullen Frost Bankers Inc. purchased a new stake in Servicemaster Global during the second quarter worth $32,000. Tobam purchased a new stake in Servicemaster Global during the second quarter worth $49,000. Quantamental Technologies LLC purchased a new stake in Servicemaster Global during the second quarter worth $83,000. AdvisorNet Financial Inc boosted its holdings in Servicemaster Global by 84.1% during the second quarter. AdvisorNet Financial Inc now owns 1,657 shares of the business services provider’s stock worth $86,000 after buying an additional 757 shares in the last quarter. Finally, Harvest Fund Management Co. Ltd boosted its holdings in Servicemaster Global by 63.2% during the second quarter. Harvest Fund Management Co. Ltd now owns 1,843 shares of the business services provider’s stock worth $96,000 after buying an additional 714 shares in the last quarter.

The company has a debt-to-equity ratio of 0.59, a current ratio of 1.17 and a quick ratio of 1.09. The firm has a market capitalization of $7.63 billion, a PE ratio of 47.00, a P/E/G ratio of 2.09 and a beta of 0.54. The company’s fifty day simple moving average is $55.54 and its 200-day simple moving average is $53.67.

About Servicemaster Global (NYSE:SERV)

ServiceMaster Global Holdings, Inc provides services to residential and commercial customers in the termite, pest control, cleaning, and restoration markets in all 50 states and the District of Columbia. The company operates through two segments, Terminix and ServiceMaster Brands. The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with damage claim guarantees, periodic pest control services, insulation services, mosquito control, crawlspace encapsulation, and wildlife exclusion.

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