ADT Stock Gains After Q4 Results, Guides FY22 Revenue Above Consensus

ADT Inc ADT reported fourth-quarter sales growth of 5% year-over-year to $1.38 billion, beating the consensus of $1.32 billion.
Operating income declined to $10 million from $17 million a year ago, and margin contracted 60 bps to 0.7%.
Adjusted EBITDA was $574 million (+7.7% Y/Y), and the margin expanded by 103 bps to 41.6%.
Adjusted EPS loss improved to $(0.03) from $(0.12) in 4Q20.
CSB revenue for the quarter was flat at $1.05 billion. Adjusted EBITDA for the CSB segment increased 7% to $553 million due to higher M&S revenue and lower selling and general and administrative expenses.
Commercial performance improved with revenue growing 8% Y/Y to $284 million, driven by a 13% increase in M&S revenue.
As of the end of the quarter, recurring monthly revenue (RMR) totaled $359 million, up 5% over the prior year.
Dividend: The company declared a cash dividend of $0.035 per share to record holders as of March 17, 2022, payable on April 4, 2022.
ADT generated cash from operating activities of $1.65 billion in FY21, compared to $1.37 billion a year ago. Adjusted free cash flow was $465 million (-31.1% Y/Y).
FY22 Outlook: ADT expects revenue of $6.2 billion - $6.4 billion, well above the consensus of $5.46 billion.
The company expects adjusted EBITDA of $2.34 billion - $2.44 billion and adjusted free cash flow of $550 million - $625 million.
Price Action: ADT shares are trading higher by 6.98% at $7.82 during the premarket session on Tuesday.

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