Why ADT (ADT) Shares Are Trading Lower Today - ADT (NYSE:ADT)

ADT Inc ADT reported fourth-quarter FY22 sales growth of 19% year-on-year to $1.645 billion, beating the consensus of $1.620 billion.
The end-of-period recurring monthly revenue (RMR) of $374 million rose 4% Y/Y.
Consumer and small business revenue grew 6% to $1.12 billion, and Commercial revenue climbed 15%.
The operating margin improved from 0.7% a year ago to 12.5%.
The company held $373 million in cash and equivalents. Net cash provided by operating activity totaled $567 million.
Adjusted EBITDA margin decreased by 400 bps to 38% due to a decline in CSB and Solar margins.
Adjusted EPS of $0.10 missed the consensus of $0.18.
"Our results reflect the progress ADT is making as we shift from a traditional security company towards an innovative business poised for accelerating growth in new markets," said ADT President and CEO, Jim DeVries.
"We concluded the year with positive momentum in our business, along with launching our partnership with State Farm and advancing our strategic relationship with Google."
Outlook: ADT expected FY23 sales of $6.60 billion - $6.85 billion, against the consensus of $6.85 billion.
It expects adjusted EPS of $0.30 - $0.40 (consensus $0.69).
Dividend: The board declared a cash dividend of $0.035 per share.
Price Action: ADT shares traded lower by 8.33% at $7.21 on the last check Tuesday.

Overview Rating:

Speculative

100

0100

ADT Issues Cautious FY23 Outlook After Q4 Earnings Miss, EBITDA Margin Decline