Will ADT Ever Get It Right?

By Chris Lange Updated Jan 30, 11:34PM EST · Published Mar 12, 1:30PM EDT

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Will ADT Ever Get It Right? — © Tomsmith585 / Getty Images

ADT Inc. (NYSE: ADT | ADT Price Prediction) has seen its shares get more or less halved since it has been a public company. The firm originally came public in January 2018, but since then the stock has been on a steady decline. And this quarter seems to be only feeding the fire.

The firm released its fourth-quarter financial results after the markets closed on Monday, posting a net loss of $0.04 per share and $1.19 billion in revenue. The consensus estimates had called for $0.11 in earnings per share and $1.16 billion in revenue.

Monitoring and related services (M&S) revenue, which comprised $1.04 billion of total revenue, was up 3% over the same period of last year. The growth in M&S revenue was attributable to an increase in monthly recurring revenue, which resulted from the addition of new customers and improvements in average pricing, partially offset by customer attrition.

In addition to M&S revenue, installation and other revenue was up by an additional $52 million from last year, primarily driven by commercial revenues as a result of the successful execution of management’s commercial growth strategy.

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Recurring monthly revenue, a primary driver of M&S revenue, grew by 2%, or 4% including Red Hawk, in the quarter over the same period of last year. Net growth in the core U.S. residential and commercial operations was offset by a decline in recurring monthly revenue attributable to the Canadian business.

Jim DeVries, ADT’s president and CEO, commented:

We continue to demonstrate improvement across key operating metrics and strengthened our leadership in leading-edge home automation through the launch of ADT Command and Control. Moreover, following the December acquisition of Red Hawk, which accelerated our expansion into the attractive commercial market, we recently added a new growth platform for our business through the acquisition of LifeShield.

Shares of ADT were last seen down 13% at $6.60, in a 52-week range of $5.88 to $10.80. The consensus price target is $11.89.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.