BUZZ-Apollo-backed ADT hits 2-year high on Q4 beat, stock buyback

Reuters
02-28
BUZZ-Apollo-backed ADT hits 2-year high on Q4 beat, stock buyback

** Shares of ADT Inc ADT.N, home security firm backed by private equity giant Apollo Global Management APO.N, jump on Thurs after qtrly results top expectations and it unveils stock buyback

** ADT shares rise as much as 10.6% to $8.33, highest since mid-Feb 2023. Shares last up 6% to $7.99 and tracking biggest daily pct advance since Oct 24

** Boca Raton, Florida-based early Thurs reported Q4 rev of $1.26 bln, up 8% y/y, citing record recurring monthly rev and record customer retention

** Analysts had expected rev of $1.23 bln, while adj EPS of 20 cents is a penny above consensus, per LSEG data

** Co announces $500 mln share repurchase program to run through Apr 30, 2026

** ADT has ~907 mln shares outstanding for ~$7.3 bln market cap. Apollo owns ~359.2 mln shares, or ~42% stake, per LSEG

** For 2025, ADT forecasts full-yr rev of $5.025-$5.225 bln and adj EPS of 77-85 cents, both in line with estimates

** Avg rating among 5 analysts covering ADT is "hold" with median PT of $9

** With move on the session, stock up ~15.5% YTD

** Apollo took ADT public in 2018 IPO priced at $14 after buying the co in 2016 for ~$7 bln

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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