Published on 16 Mar 2022 on Zacks via Yahoo Finance

Terminix Global Holdings, Inc. (TMX) Soars 7.2%: Is Further Upside Left in the Stock?

Terminix Global Holdings, Inc. (TMX) shares ended the last trading session 7.2% higher at $43.10. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.9% loss over the past four weeks.

Terminix Global Holdings appreciated following its update that the required antitrust process in the United States for its pending merger with Rentokil Initial plc received clearance — satisfying one of the main conditions for the completion of the deal.On Dec 14, 2021, both the parties had entered into an agreement under which Rentokil Initial will acquire Terminix for stock. On Mar 14, 2022, the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired, thereby completing the necessary antitrust process in the United States.However, a number of other conditions still remain to be fulfilled. These include shareholder approval of both the companies, the registration of Rentokil’s American Depository Shares (“ADSs’”) and their listing on the New York Stock Exchange. The merger is expected to close by the end of the third quarter of 2022.This deal will bring together two complementary businesses and create a global leader in pest control and hygiene & wellbeing, and the leader in the pest control business in North America — the world’s largest pest control market. The business will have a strong platform for growth, particularly in North America, and an attractive financial profile.This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +10%. Revenues are expected to be $490.86 million, up 4.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.