Security technology and services company ADT (NYSE:ADT) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
ADT beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.24 billion, up 5.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations. It reported 6.4 million customers, flat year on year.
Is ADT a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ADT’s revenue to grow 1.1% year on year to $1.24 billion, a reversal from the 7.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ADT has missed Wall Street’s revenue estimates six times over the last two years.
Looking at ADT’s peers in the specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pool’s revenues decreased 1.6% year on year, beating analysts’ expectations by 2.4%, and LKQ reported a revenue decline of 4.1%, falling short of estimates by 2%. Pool’s stock price was unchanged after the resultswhile LKQ was up 2.8%.
Read our full analysis of Pool’s results here and LKQ’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the specialized consumer services stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. ADT’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $8.64 (compared to the current share price of $7.59).
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