ADT Inc. | $ADT Stock | Shares Rally After Q1 Profit Beats Estimates

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ADT Inc. (NYSE: ADT)

 

ADT shares gained more than 6% before the bell Wednesday, after the security firm announced first-quarter adjusted earnings that toppled analyst estimates.

The company went public in January, and has since tumbled 32.2%. At the time of writing, the shares had gained 6.67% to trade at $8.57 in premarket trade.

ADT Earnings & Outlook

ADT reported a revenue of $1,116 million during the first quarter of 2018.  Revenue arising from monitoring and related services was $1,017 million, representing an increase of 2% from year-ago period.

Overall, total revenue increased by $38 million from same quarter last year. The increase was mainly benefited by the company’s successful execution of its commercial growth strategy. Operating cash flow increased by 23% to stand at $505 million.

Adjusted earnings per share increased by 10% from the same quarter last year to $0.34. Analysts expected the company to post earnings per share of $0.24. ADT’s adjusted net income that increased by 26% from the year-ago period to $249 million.

The net loss for the quarter was $157 million, or $0.22 per share, versus a loss of $141 million, or $0.22 per share, in the year-ago period.

ADT CEO Comments

ADT Chief Executive Officer Tim Whall made the following comments: “We continue to build momentum and are off to a strong start in our first quarter operating as a public company. This quarter we continued to deliver strong year-over-year growth in revenue, EBITDA, and cash flow. Operationally, we continued to execute on our commitment to enhance our customer service capabilities and implement operational improvements.  As a result, we lowered attrition to a new all-time low of 13.6% and improved revenue payback.  I am pleased with our first quarter results and our management team is excited to continue executing our strategy to drive free cash flow growth and create long-term shareholder value.”

ADT Inc. Company Profile

ADT Inc. focuses on the provision of automation and security solutions for business and homes in Canada and the United States. The company provides a range of video, burglary, fire alarm, access control, as well as medical alert solutions to multi-site, commercial, and residential customers.

It primarily provides interactive business and home automation solutions; and resourcefully monitored security solutions, which are designed to sense carbon monoxide, control access, react to flooding, changes in temperature, and movement. The solutions also address personal emergencies like incapacitation, medical emergencies, or injuries.

ADT also offers interactive solutions which enable allow clients to use their smartphones, laptops, and tablets to disarm and arm their security systems, adjust thermostat or lighting levels, and view real time video of their properties.

Additionally, the firm offers professional monitoring of third party gadgets by allowing other firms to integrate solutions into its billing and monitoring service. The company avails its products under the ADT Pulse, ADT Always There, ADT Canopy, ASG Security, Protection One, and Creating Customers for Life names.

It operates via a network of about 200 service and sales offices, two national sales call centers, twelve underwriter labs listed monitoring centers, and two regional distribution centers, and seven field and customer support locations.

The company was founded in 1874 and its head offices are located in Boca Raton, Florida. It was formerly called Prime Security Services Parent before changing to its current name in 2017. –Reuters

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