ADT Stock Drops After Announcing Loss And Amazon Delay
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 *********** *******
*** *** ********** ****** ** * partner, ****** **** **** **** ****** will ****** ***'* ******* ********** (*.*., the**** $** ******* ************ ********* ******** system).
*** *** *** ******* ***** ** the ******** **** [**** ** ****** available] **** *** ********** *********** **** Amazon *** *******:
*****, ******* **** ***** *** ** launch **** ** ***** ***** *** partnership *** *** *****:
*******, ******* ******** ***** ***** **** very ****** ** *** ******** ****** on *** ******** ** ****, ** seen ** *** ********** *****:
***** **** ** ** ******* ***** 2019 *** **** **** **** ** date *** *** ******, *** **** of ******** ****** ** **** ** obvious. *** ****** ******** ******* ****, if ***, ******** ************ **** ****** make ** **** ** **** ******** to ******* ***** *** *********** ********.
ADT ******
*** **** *** ******** *** *** extent ** *** **** *** ***, as *** ********* ** *** ************:
*** ******* ******** * *** **** of $*** *******, ******** ** ***** year’s *** ****** ** $*** *******. The ******** ** *** **** *** primarily *** ** *** ***** ****’* income *** ******* ** $*** ******* related ** *** ****** *** * goodwill ********** **** ** $** ******* in **** *** ** **************** ** our ******** ********.
*** ********* *** *** ** **** since *** **** *********** ****** ** facing ********* *********** **** ****** ***** total *********** ******, ********* **** ** see ******** *******.
******* ********** ***** ********* ***** ****** from ***'********* ******** ********** *** ******* *** **** ****** ******** from *** "****************" ** *** ******** division ** **** ** *** *********** below:
********* ** ****** **** **********:
********* ** *** ******:
Commerical **-*********
** *** ******** ****, *** ********** their ********** **-********* ** * **** tenet ** ***** ********:
********* *** ******** ****** *** *********** core ********, ** ** ********* ******* into *** ********** ******... **** ****** *********** will ******* **** ********** *********** **** the **** ** ** ** ******, which **** **** ******** ** * few *******.
*** ******* ************* *** **** ****:
**’** ** *** ***** ** * multi-year ********** *********, ***** ******** ** exceptional ********* ** ******** **** *** acquisition ** *** ****, *** ** the **** ********* ***** *********** ********** players. ***** *** ****’* ******* ******** in **********, ****, **** ****** *** security ********, **** *********** ************* ******* our ********** ******** ** ***** ** our ******* *********, *** ********** ***** and *** ********** ******** ******* ************.
****** * *** ******** ** ********** business ****** ** ************:
*** ************ *** ***** ******* *** up **% ****** *** ****** *******, driven ** ********* ** *** ********** business, **** *********** *** ******* ****** acquisitions.
******, *** **** ********** *********** **** be * *** ****** ** ******* growth:
** ***** ** *** ******** ******** for ****, ** ****** ********* ** continue ** ******* *** ****-**** ******** to ** ** * ***** ** $4.9 ******* ** $*.* *******, ***** implies *** ****** **** ** *% to **%, ********* ** *** ****-**** benefit ** *** ****.
*** *** **** ****** ** ********* driven ******* ** ********* ** ************ revenue ** *** ********** ********, ***** with ********* ** ********** *** ******** revenue ** *** **** ********.
**** ** **********, ***** *** ********** faced ** *** *********** ******.
***** **** ********* **** ******* ***** the *********** ****** **** ******* *** financial ******. ** ***** **** ** see *** *** ****** ** ********/**** cancellations *** *** ******* **** *******. It **** **** ** ******* **** of *** ************ **********.
***/****** ***** ***** ***** ********…. ****** today *.**.** @ $*.**.
** ******** ***….? ** ****** ******* this ******* *** *** ***** ****; or *** ********** *** **** ****? Each **** ** **** ********* *******. As *** ****, ** **** *** traditional ********….. **** **** ***** *** Digital ***** ********. **** *** **** of *** ***** *** ********* ** career **** *** ** *****. ****: ASCMA/Monitronics ***** “*****” *****, **** **** $88 ******* ***** ***.
******: *** *****; ******* ******** *****
*** **** *’* **** ** **** someone *** “**’** ******* *** ** commercial *** ***** **** ***********.” ;)