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Market Overview

Preview: ADT's Earnings


ADT (NYSE:ADT) unveils its next round of earnings this Thursday, February 25. Get prepared with Benzinga's ultimate preview for ADT's Q4 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

ADT EPS will likely be near $0.31 while revenue will be around $1.29 billion, according to analysts. ADT reported a per-share loss of $0.03 when it published results during the same quarter last year. Sales in that period totaled $1.30 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 1133.33% increase in the company's EPS figure. Revenue would have fallen 0.62% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.15 0.29 0.19 0.23
EPS Actual -0.08 -0.07 -0.09 -0.03
Revenue Estimate 1.25 B 1.25 B 1.23 B 1.27 B
Revenue Actual 1.30 B 1.33 B 1.37 B 1.30 B

Stock Performance

Shares of ADT were trading at $9.93 as of February 23. Over the last 52-week period, shares are up 52.95%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. ADT is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings