NYSE$ADT

ADT Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

ADT's financial results were strong despite COVID-19 disruptions, with revenue up 10% year-over-year and significant cash flow generation.

ADT reported a strong first quarter with a 10% increase in total revenue, driven by higher installation revenue and the Defenders Acquisition. However, the company experienced a net loss due to various factors including a settlement related to the Defenders Acquisition and non-cash charges. The company is updating the financial guidance for 2020.

  • Total revenue increased by 10% to $1,370 million.
  • Net loss was $300 million, compared to a net loss of $66 million in the prior year.
  • Free Cash Flow before special items increased to $173 million from $171 million.
  • Trailing twelve-month gross customer revenue attrition increased by 20 bps to 13.5%.

Headline financials

Total Revenue

$1.37B

Previous: $1.24B+10.2%
EPS (adj)

-$0.09

Previous: -$0.02-350.0%
Capital Expenditures

-$34.6M

Previous: -$37.7M+8.3%
Free Cash Flow

-$335M

Previous: -$104M-221.4%
Net Income

-$300M

Previous: -$66.5M-351.8%
Operating Income

-$89.4M

Previous: $90.4M-198.8%
Cash & Equivalents

$118M

Previous: $95.7M+23.5%
Total Assets

$16.3B

Previous: $17B-4.5%

Revenue & EPS history

ADT · Revenue · Quarterly

$1.37B

Q1 2020+10.2%vs Q1 2019
Beat estimate in 12 of 12 quarters(100%)
ActualEstimate

Forward guidance

The Company is updating the following financial guidance for 2020:Total Revenue $5,000 - $5,300, Adjusted EBITDA $2,075 - $2,175, Free Cash Flow before special items $600 - $700.

Headwinds

  • Updated Financial Outlook assumes disruption to the Company’s operations, primarily new sales, during the second quarter due to stay at home restrictions and related COVID-19 impacts
  • Moderately recessionary environment in the third and fourth quarters of 2020.
  • The Company is continuing to integrate the January 2020 acquisition of Defenders
  • Assessing the progress of a successful February 2020 national launch of a new consumer financing program.
  • Both initiatives require further evaluation, decisions, and actions that may impact our 2020 operating results and financial presentation, as well as the accounting treatment of the above metrics.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-2.2%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-1.7%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+13.9%

Q3 2024

Best reaction

-25.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.0%-2.2%-6.6%
Q4 2025+2.0%-18.3%-18.3%
Q3 2025-7.9%-5.9%-7.7%
Q1 2025-2.0%+0.9%+3.9%
Q4 2024+7.8%+0.8%+7.6%
Q3 2024+13.9%+6.2%+9.0%
Q2 2024-10.9%-9.1%-6.3%
Q1 2024+0.8%+1.9%+13.2%
Q4 2023+11.2%+12.3%+2.9%
Q3 2023+9.9%+9.1%+10.8%
Q2 2023+5.2%+6.3%-5.5%
Q1 2023-20.7%-13.5%-15.2%
Q4 2022-3.3%-2.4%-8.9%
Q3 2022+2.9%+5.6%+18.2%
Q2 2022+9.7%+7.4%-1.4%
Q1 2022-3.4%-7.0%+2.9%
Q4 2021+7.8%+3.8%+3.8%
Q3 2021-0.6%+1.1%-5.1%
Q2 2021-13.5%-14.0%-17.9%
Q1 2021+3.1%+2.7%+19.6%
Q4 2020-25.8%-30.0%-19.9%
Q3 2020+4.3%+5.9%+22.3%
Q2 2020-5.9%-6.6%-19.4%
Q1 2020+2.2%+4.9%+51.4%
Q4 2019-12.6%-22.6%-38.4%
Q3 2019+8.0%+8.5%+9.1%
Q2 2019-7.1%-11.9%-5.3%
Q1 2019-11.6%-8.9%-13.2%
Q4 2016-11.0%-12.3%-9.6%
Q4 2018-11.0%-12.3%-9.6%
Q3 2017+5.8%+5.8%+0.4%
Q3 2018+10.7%+1.8%+1.8%
Q2 2017-6.1%-6.1%-7.2%
Q2 2018-7.4%+0.0%-3.8%
Q1 2018-7.6%-14.8%-4.1%
Q1 2017-7.6%-14.8%-4.1%
Q4 2017-14.5%-12.2%-11.9%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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