Earnings To Watch: ADT (ADT) Reports Q3 Results Tomorrow

StockStory
23 Oct 2024
Earnings To Watch: ADT (ADT) Reports Q3 Results Tomorrow

Security technology and services company ADT (NYSE:ADT) will be reporting earnings tomorrow before market hours. Here’s what to look for.

ADT met analysts’ revenue expectations last quarter, reporting revenues of $1.20 billion, up 3.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ earnings estimates but a miss of analysts’ EBITDA estimates. It reported 6.4 million active clients, down 3.9% year on year.

Is ADT a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ADT’s revenue to decline 1.1% year on year to $1.22 billion, improving from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at ADT’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.

Read our full analysis of Nike’s results here and Scholastic’s results here.

Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. ADT is down 4.1% during the same time and is heading into earnings with an average analyst price target of $9.03 (compared to the current share price of $6.95).

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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.

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