ADT Slides Back, Disappointing Results, Poor Commercial Performance

By Joey Walter, Published Aug 06, 2020, 11:24am EDT

While ADT had an incredible start to the week, driven by the Google investment, ADT has since slid back, now disappointing investors plus poor commercial performance.

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In this note, we examine why ADT's stock price has slid, including their reliance on residential and challenges to penetrate commercial, as well as their most important growth factor, recurring revenue, decreasing as well.

Overview – ****** ************

*** ****** ********* ******* **** ************** * ***** **** expected ****:

* *** **** ** $107 *******, ******** ** prior ****’* *** **** of $*** ******* *** first ******* **** *** loss ** $*** *******.

********, *** *** ******* revenue ** $*.**–*.* ******* and ******** ******** $*.** billion ** ***** **** they ********** *********.

Stock ***** ********

***** ***'* ***** ****** from ***** $* * share ** * ***** Monday **** ** $**+, the *******'* ***** ** now **** ***** $**. While ***** ** ******** of ~**%, *** ***** remains ******* ***** **** it ***** ** ** 2018.

Recurring ******* (*&*) ****

*** ******* ********* ******* loss ******** ** **** as * "********* ** M&S *******". *&* (********** and ********) ** *** most ********* ******* ** ADT's ******* *** ****** potential ** **** ******** and **********, ** *** company *****% ** *********.

********* ******* **** *% year **** ****, * negative **** ******* ******* revenue ***** ** *% year **** ****:

***** ******* *** $*,*** million, ** *%, ** $48 ******* ****-****-****. ********** and ******* ******** ******* (“M&S *******”), ***** ********* $1,041 ******* ** ***** revenue, *** **** *%, or $** ******* **** the **** ****** **** year.

*******, **** *** ******* on ***** "**** ** industry" ******** ***** ** over *,*** ** ** installations *** *********** *** this ** **** ********* and **** *********** ******* than ***.

Commercial **** "********, *** **********"

*** **********, ***** *** has **** ********* ******* in *** **** *** years **** ******** ************, was **** **% ** Q2 **** **** ****, but ***'* *** ****** the **** "********, *** diminished" ***********.

*******, *********** *** * major ****** ** **** a ******* **** *** company ** ************:

** ******* *** ****** year ** ********** **** a **% ******* ****** rate ******* ******** ****** declining ** ***** ** COVID-19 ******* **** **** play *** ** ***** the ******* **** *% organic ******.

** *** '** ********** Total *******' ***** *****, commercial ******* ******* **** 16% ** **** **** quarter, * ******* ************* result:

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******, *** ********** **** expect ********** **** *** commercial ******** *** *** rest ** *** ****, saying:

*****, ** ****** ******** in ****** *** ******* essentially ******* *** ********* of *** ****, ****’* baked **** *** ********.

*******, *** ********** **** are ***** ******* **** term ***** **********:

**’** ***** **** **** to ******** *** ********** to ** **** ******** over *** **** ****. We *** ******* ** the *********** ** *** Hawk. ** *** * big ******* ********* **** completed **** **** *******. We ******** ** **** at ****-** *&*, **** remains **** ** *** ongoing ******** **** *** we *** ***************** ********* those *******.

*******

*** ****** ********** *** clearly * ******* *** the ********* *******. *******, the ****** ********* ***** has *********** ********* ***** how **** *** **** do ** **** *** residential *** ********** **********.

Vote / ****

Comments (5)

*******, **** *** ******* on ***** "**** ** industry" ******** *****

** **** ** **** they *** ******* ***** hat ** **** *** doomed.

*** **** ****** ** a ***** ********, **** can *** ******** ** ADT ********** ** *********** place ******* ** ****** on ***'* ***** ** things ***'* *******. ****** a **** ** ******* very ***-**** *********** *** ADT, ***. * ***** they *** ** **** position **** ****.

* ***** ******** ******* I'm ******** ** **** be **** ***** ******* some ********** *******.

****** **** ******** ** ADT ****** ****…. ***** is *** ****/****** ************** **** *******, *** RMR. * ***-**** **** of ***** ******** **** years ** ******* ******* and ********. **********, *** time ************ *** ****-**** many ***** ** ********* revenue & ********. *** still ******* ** **** us ***** **** ******** “unit” ********* (*** ****** “revenue” *********). *** *******, the *** ****** **** in *** *********** *****, Monitronics/SCTY, ******* ***** ******** unit ********* **** ** or **** **%, * major ************ ** ***** recent **********. *** ***** refuses ** ****** ***** true ******** **** *********, which ** ******* ** above **%, *** *** reported **.*%. (******** ******* is *-**%).** *** ****, *** very **** **** ** replacing **** **** ****** RMR ******** ********* *** destroy **** *** ************ business ******. >>******: *** *****; ******* Services *****

*** **** ***** *** needs ** ** ** bring **** *** **** when **** **** ***** Young ** ** ***** commercials. **** **** ********** fix ***** ******* **** have.

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