Home security company ADT's Q2 revenue up 7% to $1.3 bln
Overview
ADT Q2 revenue up 7% to $1.3 bln
Adjusted EPS for Q2 beats estimates
During the second quarter, the company repurchased 12 mln shares, returning $589 mln to shareholders YTD
Outlook
ADT reiterates 2025 revenue guidance of $5.025 bln to $5.225 bln
Company updates 2025 adjusted EPS guidance to $0.81-$0.89
ADT expects 2025 adjusted EBITDA of $2.65 bln to $2.75 bln
Company anticipates 2025 adjusted free cash flow of $800 mln to $900 mln
Result Drivers
REVENUE GROWTH - Driven by increased average prices and higher mix of professionally installed systems
STRATEGIC ACCOUNT PURCHASE - Closed on a strategic bulk purchase of about 50,000 customer accounts, aligning with existing platforms
OPERATIONAL ENHANCEMENTS - Launch of new smart lock and virtual customer service improvements
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | $1.29 bln | $1.28 bln (3 Analysts) | |
Q2 Adjusted EPS | Beat | $0.23 | $0.2 (5 Analysts) |
Q2 EPS | $0.18 | ||
Q2 Adjusted Income from Cont Ops | $191 mln | ||
Q2 Net Income | $165 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for ADT Inc is $9.00, about 6.3% above its July 23 closing price of $8.43
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release:
