Security systems provider ADT tops Q3 profit estimates, tightens FY profit view

ADT

04/11/2025 12:04

Overview

ADT Q3 revenue up 4% to $1.3 bln, meets analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

Company returned $746 mln to shareholders via buybacks and dividends year-to-date

Outlook

Company updates 2025 revenue guidance to $5,075 - $5,175 mln

ADT tightens 2025 adjusted EPS guidance at $0.85 - $0.89 from $0.81 - $0.89

Company expects 2025 adjusted free cash flow between $800 mln and $900 mln

Result Drivers

RECURRING REVENUE - Revenue growth driven by durable recurring monthly revenue, up 1% to $362 mln

STRATEGIC ACQUISITIONS - Bulk purchase of 15,000 customer accounts for $24 mln with attractive returns

PRODUCT INNOVATION - Launch of ADT+ Alarm Range Extender enhances platform capabilities and customer retention

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.298 bln
$1.29 bln (2 Analysts)
Q3 Adjusted EPS
Beat
$0.23
$0.21 (4 Analysts)
Q3 EPS
$0.16
Q3 Adjusted Income from Cont Ops
$187 mln
Q3 Net Income
$145 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 $9.50, about 7.5% above its November 3 closing price of $8.79

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX2zf2Vq

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)