ADT (ADT) Q4 Earnings: What To Expect

Security technology and services company ADT (NYSE:ADT) will be reporting results this Monday morning. Here’s what to look for.

ADT met analysts’ revenue expectations last quarter, reporting revenues of $1.30 billion, up 4.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

This quarter, the market is expecting ADT’s revenue to grow 2.5% year on year, slowing from the 7.5% increase it recorded in the same quarter last year.

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 multiple times over the last two years.

Looking at ADT’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. 1-800-FLOWERS’s revenues decreased 9.5% year on year, meeting analysts’ expectations, and Matthews reported a revenue decline of 29.1%, topping estimates by 0.8%. 1-800-FLOWERS traded up 6.9% following the results while Matthews’s stock price was unchanged.

Investors in the consumer discretionary - specialized consumer services segment have had steady hands going into earnings, with share prices flat over the last month. ADT is down 1% during the same time and is heading into earnings with an average analyst price target of $9.48 (compared to the current share price of $7.92).