ADT Stock Drops After Announcing Loss And Amazon Delay

Author: Dan Gelinas, Published on Mar 12, 2019

ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below:

In this note, based on our analysis of the earnings call we look at:

  • ADT stock down to Dec. 2018 levels
  • Losses from LifeShield and ADT Canada
  • Amazon partnership not ready
  • Commerical Re-expansion Tenet
  • Outlook

***'* ***** ***** ******* ************* ***** ********* ***** ****** *** delays ** *** ****** ***********, ** **** ** *** ********** below:

** **** ****, ***** ** *** ******** ** *** ******** call ** **** **:

  • *** ***** **** ** ***. **** ******
  • ****** **** ********** *** *** ******
  • ****** *********** *** *****
  • ********** **-********* *****
  • *******

[***************]

Amazon *********** *******

*** *** ********** ****** ** * *******, ****** **** **** that ****** **** ****** ***'* ******* ********** (*.*., ******* $** ******* ************ ********* ******** ******).

*** *** *** ************ ** *** ******** ******** *** ********** *********** **** ****** *** *******:

*****, ******* **** ***** *** ** ****** **** ** ***** since *** *********** *** *** *****:

*******, ******* ******** ***** ***** **** **** ****** ** *** positive ****** ** *** ******** ** ****, ** **** ** the ********** *****:

***** **** ** ** ******* ***** **** *** **** **** have ** **** *** *** ******, *** **** ** ******** impact ** **** ** *******. *** ****** ******** ******* ****, if ***, ******** ************ **** ****** **** ** **** ** they ******** ** ******* ***** *** *********** ********.

ADT ******

*** **** *** ******** *** *** ****** ** *** **** was ***, ** *** ********* ** *** ************:

*** ******* ******** * *** **** ** $*** *******, ******** to ***** ****’* *** ****** ** $*** *******. *** ******** in *** **** *** ********* *** ** *** ***** ****’* income *** ******* ** $*** ******* ******* ** *** ****** and * ******** ********** **** ** $** ******* ** **** due ** **************** ** *** ******** ********.

*** ********* *** *** ** **** ***** *** **** *********** market ** ****** ********* *********** **** ****** ***** ***** *********** growth, ********* **** ** *** ******** *******.

******* ********** ***** ********* ***** ****** **** ***'********* ******** ************* ******* *** **** ****** ******** **** *** "****************" ** its ******** ******** ** **** ** *** *********** *****:

********* ** ****** **** **********:

********* ** *** ******:

Commerical **-*********

** *** ******** ****, *** ********** ***** ********** **-********* ** a **** ***** ** ***** ********:

********* *** ******** ****** *** *********** **** ********, ** ** diversify ******* **** *** ********** ******... **** ****** *********** **** require **** ********** *********** **** *** **** ** ** ** months, ***** **** **** ******** ** * *** *******.

*** ******* ************* *** **** ****:

**’** ** *** ***** ** * *****-**** ********** *********, ***** received ** *********** ********* ** ******** **** *** *********** ** Red ****, *** ** *** **** ********* ***** *********** ********** players. ***** *** ****’* ******* ******** ** **********, ****, **** safety *** ******** ********, **** *********** ************* ******* *** ********** platform ** ***** ** *** ******* *********, *** ********** ***** and *** ********** ******** ******* ************.

****** * *** ******** ** ********** ******** ****** ** ************:

*** ************ *** ***** ******* *** ** **% ****** *** fourth *******, ****** ** ********* ** *** ********** ********, **** organically *** ******* ****** ************.

******, *** **** ********** *********** **** ** * *** ****** of ******* ******:

** ***** ** *** ******** ******** *** ****, ** ****** attrition ** ******** ** ******* *** ****-**** ******** ** ** in * ***** ** $*.* ******* ** $*.* *******, ***** implies *** ****** **** ** *% ** **%, ********* ** the ****-**** ******* ** *** ****.

*** *** **** ****** ** ********* ****** ******* ** ********* in ************ ******* ** *** ********** ********, ***** **** ********* in ********** *** ******** ******* ** *** **** ********.

**** ** **********, ***** *** ********** ***** ** *** *********** market.

Comments (3)

...********* *** ******** ****** *** *********** **** ********, ** ** diversify ******* **** *** ********** ******...

*** **** *’* **** ** **** ******* *** “**’** ******* out ** ********** *** ***** **** ***********.” ;)

***** **** ********* **** ******* ***** *** *********** ****** **** dictate *** ********* ******. ** ***** **** ** *** *** raw ****** ** ********/**** ************* *** *** ******* **** *******. It **** **** ** ******* **** ** *** ************ **********.

***/****** ***** ***** ***** ********…. ****** ***** *.**.** @ $*.**.
** ******** ***….? ** ****** ******* **** ******* *** *** short ****; ** *** ********** *** **** ****? **** **** to **** ********* *******. ** *** ****, ** **** *** traditional ********….. **** **** ***** *** ******* ***** ********. **** and **** ** *** ***** *** ********* ** ****** **** are ** *****. ****: *****/*********** ***** “*****” *****, **** **** $88 ******* ***** ***.
******: *** *****; ******* ******** *****

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