ADT (NYSE:ADT – Get Free Report) posted its earnings results on Tuesday. The security and automation business reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.01, FiscalAI reports. ADT had a return on equity of 18.57% and a net margin of 11.85%. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.32 billion. During the same quarter in the previous year, the firm earned $0.23 earnings per share. The business’s revenue was up 3.9% compared to the same quarter last year.
Here are the key takeaways from ADT’s conference call:
- ADT agreed to be acquired by Thrive Holdings for $10 per share in cash, representing a 46% premium to its unaffected share price and valuing the company at approximately $7.6 billion in equity value. The transaction is expected to close in the first quarter of 2027, subject to stockholder, antitrust, and other customary approvals.
- ADT withdrew its previously issued financial guidance and will not provide new guidance because of the pending transaction. The company also declined to take questions on the earnings call.
- Third-quarter results showed 4% revenue growth to $1.35 billion, adjusted EPS growth of 4% to $0.24, and adjusted free cash flow of $217 million. Year-to-date free cash flow exceeded $1 billion, up 46%, supported by lower cash taxes and interest as well as working-capital management.
- Core operating trends were mixed, with gross customer revenue attrition increasing to 13.1% from 13.0% and monitoring and related-services revenue declining 1%. Adjusted EBITDA fell 2% due largely to higher general and administrative costs, including technology investments.
- ADT continued expanding its offerings and partnerships, including Unusual Activity Alerts, Origin AI pilots, broader ADT Blu distribution through Walmart.com, and a new service arrangement with Apple Retail. The company also reported net leverage of 2.7 times adjusted EBITDA and returned $64 million to shareholders during the quarter.
ADT Price Performance
ADT traded down $0.04 on Thursday, hitting $9.87. 15,071,132 shares of the company were exchanged, compared to its average volume of 10,874,567. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.52 and a current ratio of 0.47. The business’s fifty day moving average is $7.13 and its 200 day moving average is $7.12. ADT has a fifty-two week low of $6.03 and a fifty-two week high of $9.99. The firm has a market capitalization of $7.21 billion, a P/E ratio of 13.33 and a beta of 0.95.
Analysts Set New Price Targets
A number of brokerages recently issued reports on ADT. Barclays raised ADT from an “underweight” rating to an “equal weight” rating and set a $10.00 target price for the company in a research report on Wednesday. Morgan Stanley reduced their price objective on ADT from $7.75 to $7.25 and set an “equal weight” rating for the company in a research note on Tuesday, October 13th. BTIG Research assumed coverage on ADT in a report on Monday, August 17th. They issued a “neutral” rating for the company. Finally, Weiss Ratings upgraded shares of ADT from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 29th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $8.73.
Read Our Latest Stock Report on ADT
About ADT
ADT Inc is a security and smart-home services company that provides monitored protection and automation solutions for residential and commercial customers. Its offerings include professionally installed security systems, 24-hour alarm monitoring, video surveillance, fire and life-safety systems, access control, home automation and related emergency response services.
The company serves customers primarily in the United States, offering solutions designed to help protect homes, businesses and other facilities from burglary, fire and other risks.
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