Security technology and services company ADT (NYSE: ADT) will be reporting earnings this Thursday before market open. Here’s what to look for.
ADT missed analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 1.3% year on year. It was a mixed quarter for the company, with EPS in line with analysts’ estimates but a slight miss of analysts’ revenue estimates.
Is ADT a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ADT’s revenue to be flat year on year, slowing from the 6.5% increase it recorded in the same quarter last year.
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. ADT has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ADT’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pool delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.8%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Pool’s stock price was unchanged after the resultswhile Monarch was up 15.9%.
Read our full analysis of Pool’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. ADT is up 11.3% during the same time and is heading into earnings with an average analyst price target of $8.10 (compared to the current share price of $7.25).
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