ADT Stock Drops After Announcing Loss And Amazon Delay

By Dan Gelinas, Published Mar 12, 2019, 01:08pm EDT

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

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

*** *** ********** ****** as * *******, ****** many **** **** ****** will ****** ***'* ******* competitor (*.*., ******* $** ******* ************ monitored ******** ******).

*** *** *** ******* noted ** *** ******** call [**** ** ****** available] **** *** ********** partnership **** ****** *** delayed:

*****, ******* **** ***** was ** ****** **** in ***** ***** *** partnership *** *** *****:

*******, ******* ******** ***** would **** **** ****** if *** ******** ****** on *** ******** ** 2019, ** **** ** the ********** *****:

***** **** ** ** already ***** **** *** that **** **** ** date *** *** ******, the **** ** ******** impact ** **** ** obvious. *** ****** ******** becomes ****, ** ***, positive ************ **** ****** make ** **** ** they ******** ** ******* their *** *********** ********.

ADT ******

*** **** *** ******** but *** ****** ** the **** *** ***, as *** ********* ** the ************:

*** ******* ******** * net **** ** $*** million, ******** ** ***** year’s *** ****** ** $638 *******.  *** ******** in *** **** *** primarily *** ** *** prior ****’* ****** *** benefit ** $*** ******* related ** *** ****** and * ******** ********** loss ** $** ******* in **** *** ** underperformance ** *** ******** business.

*** ********* *** *** is **** ***** *** core *********** ****** ** facing ********* *********** **** limits ***** ***** *********** growth, ********* **** ** see ******** *******.

******* ********** ***** ********* about ****** **** ***'********* ******** ********** *** ******* *** **** losses ******** **** *** "underperformance" ** *** ******** division ** **** ** the *********** *****:

********* ** ****** **** LifeShield:

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

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

** *** ******** ****, ADT ********** ***** ********** re-expansion ** * **** tenet ** ***** ********:

********* *** ******** ****** our *********** **** ********, as ** ********* ******* into *** ********** ******... **** deeper *********** **** ******* some ********** *********** **** the **** ** ** 18 ******, ***** **** will ******** ** * few *******.

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

**’** ** *** ***** of * *****-**** ********** expansion, ***** ******** ** exceptional ********* ** ******** with *** *********** ** Red ****, *** ** the **** ********* ***** independent ********** *******. ***** Red ****’* ******* ******** in **********, ****, **** safety *** ******** ********, this *********** ************* ******* our ********** ******** ** terms ** *** ******* portfolio, *** ********** ***** and *** ********** ******** service ************.

****** * *** ******** in ********** ******** ****** by ************: 

*** ************ *** ***** revenue *** ** **% during *** ****** *******, driven ** ********* ** our ********** ********, **** organically *** ******* ****** acquisitions.

 

******, *** **** ********** integration **** ** * key ****** ** ******* growth:

** ***** ** *** specific ******** *** ****, we ****** ********* ** continue ** ******* *** full-year ******** ** ** in * ***** ** $4.9 ******* ** $*.* billion, ***** ******* *** growth **** ** *% to **%, ********* ** the ****-**** ******* ** Red ****.

*** *** **** ****** is ********* ****** ******* by ********* ** ************ revenue ** *** ********** business, ***** **** ********* in ********** *** ******** revenue ** *** **** business.

**** ** **********, ***** the ********** ***** ** the *********** ******.

Comments (3)

...expanding our horizons beyond our residential core business, as we diversify further into the commercial market... 

For once I’d like to hear someone say “We’re getting out of commercial and going into residential.” ;)

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Looks like investors have learned about the operational issues that dictate the financial issues. We still want to see the raw number of customer/unit cancellations and the related lost revenue. It will help to explain some of the questionable financials.

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ADT/Apollo stock price still dropping…. Closed today 3.14.19 @ $6.18.
We question why….? Is Apollo running this company for the short term; or ADT management for long term? Each seem to have different motives. As ADT goes, so goes the traditional industry….. just like KODAK via Digital Photo Industry. Lots and Lots of net worth and thousands of career jobs are at stake. Note: ASCMA/Monitronics still “penny” stock, fell from $88 several years ago.
Source: Lee Jones; Support Services Group

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