Security systems provider ADT tops Q3 profit estimates, tightens FY profit view

Reuters11-04
Security systems provider ADT tops Q3 profit estimates, tightens FY profit view

Overview

  • ADT Q3 revenue up 4% to $1.3 bln, meets analyst expectations

  • Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

  • Company returned $746 mln to shareholders via buybacks and dividends year-to-date

Outlook

  • Company updates 2025 revenue guidance to $5,075 - $5,175 mln

  • ADT tightens 2025 adjusted EPS guidance at $0.85 - $0.89 from $0.81 - $0.89

  • Company expects 2025 adjusted free cash flow between $800 mln and $900 mln

Result Drivers

  • RECURRING REVENUE - Revenue growth driven by durable recurring monthly revenue, up 1% to $362 mln

  • STRATEGIC ACQUISITIONS - Bulk purchase of 15,000 customer accounts for $24 mln with attractive returns

  • PRODUCT INNOVATION - Launch of ADT+ Alarm Range Extender enhances platform capabilities and customer retention

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Meet

$1.298 bln

$1.29 bln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.23

$0.21 (4 Analysts)

Q3 EPS

$0.16

Q3 Adjusted Income from Cont Ops

$187 mln

Q3 Net Income

$145 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy"

  • Wall Street's median 12-month price target for ADT Inc is $9.50, about 7.5% above its November 3 closing price of $8.79

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX2zf2Vq

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment