ADT (ADT) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2024/04/24 3:04 am EDT

Security technology and services company ADT (NYSE:ADT) will be announcing earnings results tomorrow morning. Here's what to expect.

Last quarter ADT reported revenues of $1.22 billion, down 7.2% year on year, missing analyst expectations by 11.4%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

Is ADT buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting ADT's revenue to decline 24.7% year on year to $1.21 billion, a deceleration on the 4.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

ADT Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings.

Looking at ADT's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. LKQ delivered top-line growth of 10.6% year on year, missing analyst estimates by 1.6% 

Read our full analysis of LKQ's results here

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 4.1% over the last month. ADT is down 2% during the same time, and is heading into the earnings with analyst price target of $9.4, compared to share price of $6.35.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.