Why ADT Stock Is Falling Today

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  • ADT Inc ADT stock is plunging today after the company reported mixed Q1 results and FY23 EPS outlook lagging expectations.
  • The company reported first-quarter FY23 sales growth of 4% year-on-year to $1.61 billion, missing the consensus of $1.65 billion.
  • The end-of-period recurring monthly revenue (RMR) of $378 million rose 4% Y/Y.
  • Consumer and small business revenue grew 7% to $1.13 billion, and Commercial revenue climbed 15%.
  • The operating income declined by 44% Y/Y to $43 million.
  • The company held $303 million in cash and equivalents. Net cash provided by operating activity totaled $307 million.
  • Adjusted EBITDA margin remained firm Y/Y at 39%.
  • Adjusted EPS of $0.12 beat the consensus of $0.08.
  • CEO Jim DeVries said, "Contributing to this momentum were a number of initiatives, including our Google partnership, the strength of our Commercial business, and our execution plans for changing the trajectory in Solar."
  • Outlook: ADT reiterated FY23 sales of $6.60 billion - $6.85 billion, against the consensus of $6.76 billion.
  • It expects adjusted EPS of $0.30 - $0.40 (consensus $0.47).
  • Price Action: ADT shares traded lower by 14.30% at $5.71 on the last check Tuesday.
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