Earnings to watch: ADT (ADT) reports Q3 results tomorrow

What happened

ADT, a security technology and services company, is scheduled to report its third-quarter earnings Tuesday before market hours. Analysts expect revenue to grow 1.9% year on year, slower than the 4.4% growth in the same quarter last year. ADT reported $1.31 billion in revenue last quarter, up 2%.

Confirmed

Global impact / market context

The report will show whether ADT can sustain revenue growth as the expected pace slows. Revenue trends can shape expectations for future sales and the cash available to cover operating costs and investment; results differing from analysts’ forecasts may also change how investors position around the company.

Analyst inference

Analysts generally reaffirmed their estimates in the 30 days before the report, indicating they expect business to remain steady. In the same broad consumer-services segment, Pool beat revenue estimates and LKQ missed, but their share moves do not establish how ADT will react.

Analyst inference

What to watch

1. Compare reported revenue with analysts’ 1.9% year-on-year growth expectation; a faster or slower result would indicate whether sales are gaining or losing pace. Confirmed
2. Check whether earnings per share, or profit allocated to each share, meet expectations; ADT’s figure was in line with estimates last quarter. Confirmed
3. Look for management’s explanation of sales trends and any updated outlook; clearer evidence of slowing growth could influence forecasts for future revenue and spending. Analyst inference

Evidence

• stockstory.org