ADT's Q1 Results Expected to be In-Line With Consensus, RBC Says

MT Newswires Live
Apr 29

ADT's (ADT) Q1 results are expected to be in-line with consensus, with flattish revenue as mid-single-digit Installation revenue growth is countered by a modest decline in the Monitoring and Related Services segment, RBC Capital Markets said Monday in a note.

The brokerage expects flat revenue growth in Q1 to about $1.27 billion, roughly in line with consensus and reflects a roughly 1 point headwind from the sale of ADT's multifamily business, as well as near-term headwinds from changes to dealer and affiliate partnerships.

Over the mid-term, the brokerage expects tailwinds from ongoing investments in new initiatives like ambient sensing, AI in sales and marketing, and expansion into do-it-yourself and e-commerce channels, according to the note.

The company is scheduled to report Q1 results on Thursday.

RBC maintained a sector perform rating on ADT with a price target of $9.

Price: 7.17, Change: -0.05, Percent Change: -0.76

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