2023-05-02 11:27:06 ET
ADT ( NYSE: ADT ) stock price has dumped 12% on Tuesday after the company reported its Q1 earnings . Total revenue reported was $1.6B, up 4%, misses consensus by $40M .
End-of-period recurring monthly revenue ( RMR ) of $378M, up 4%. Approximately 80% of total consumer and small business and commercial revenue was generated from this durable recurring revenue.
High customer retention with gross customer revenue attrition maintaining record low of 12.5% and record revenue payback of 2.0 years.
GAAP net loss of $90M, down $141M, which includes $193M negative impact from Solar segment goodwill impairment or GAAP EPS loss of -$0.10.
Adjusted EBITDA of $625M, up 4%. Adjusted net income of $102M, up $109M or non-GAAP EPS of $0.12, beating consensus by $0.04 .
2023 Outlook : Total Revenue estimated between $6.6B - $6.85B ( consensus of $6.76B ); Adjusted EBITDA of $2,525M - $2,625M; Adjusted EPS $0.30 - $0.40 (consensus of $0.44); Adjusted Free Cash Flow $600M - $700M; Adjusted Free Cash Flow $525M - $625M.
SA warns that the stock is at high risk of c utting dividend and has a Dividend Safety Score of F, mentioning that one should careful about relying on this dividend for income. The company declared a dividend $0.035 to be paid in July that has a forward yield of 2.1%.
The s ell-side analyst give the stock a Buy rating and states that the average price target is $10.17.
More from contributors on the stock:
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ADT: Future Looks Solid, But May Be Due For Temporary Pullback
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ADT Inc.: Further Rebound Possible, But Inflation Could Be A Concern
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ADT stock drops 12% on guiding FY 2023 EPS below consensus