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The company has a bleak earnings surprise history, having surpassed the Zacks Consensus Estimate in only two of the preceding four quarters, while missing in the other two.
Let’s see how things have shaped up for ADT this earnings season.
ADT’s fourth-quarter performance is expected to have benefited from strength in the Consumer and Small Business (CSB) segment due to higher average pricing, subscriber growth initiatives and improved customer retention. Reduced service cost from the Virtual Assistance program is expected to have driven the CSB segment’s margin performance in the to-be-reported quarter.
An increase in the prices of products and services is expected to have aided the Commercial segment’s performance. However, high raw material, labor and fuel costs and supply chain delays might have hampered the unit’s performance.
The Solar segment’s performance might have been affected by higher costs from lower install throughput.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for ADT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: ADT has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 21 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ADT currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
In third-quarter 2022, ADT reported adjusted earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 6 cents. Revenues of $1,604 million surpassed the Zacks Consensus Estimate of $1,567 million. Both the top and bottom lines improved substantially year over year.
Performance of Some Industrial Stocks
Within the broader Industrial Products sector, the following companies have recently reported earnings numbers.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #2, reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Parker-Hannifin’s total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Xylem (XYL - Free Report) , carrying a Zacks Rank #3, reported fourth-quarter 2022 adjusted earnings (excluding 10 cents from non-recurring items) of 92 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year.
Xylem’s revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.
Image: Bigstock
Will Supply-Chain & Cost Woes Dampen ADT's Q4 Earnings?
ADT Inc. (ADT - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 28, before market open.
The company has a bleak earnings surprise history, having surpassed the Zacks Consensus Estimate in only two of the preceding four quarters, while missing in the other two.
Let’s see how things have shaped up for ADT this earnings season.
ADT Inc. Price and EPS Surprise
ADT Inc. price-eps-surprise | ADT Inc. Quote
Factors to Note
ADT’s fourth-quarter performance is expected to have benefited from strength in the Consumer and Small Business (CSB) segment due to higher average pricing, subscriber growth initiatives and improved customer retention. Reduced service cost from the Virtual Assistance program is expected to have driven the CSB segment’s margin performance in the to-be-reported quarter.
An increase in the prices of products and services is expected to have aided the Commercial segment’s performance. However, high raw material, labor and fuel costs and supply chain delays might have hampered the unit’s performance.
The Solar segment’s performance might have been affected by higher costs from lower install throughput.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for ADT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: ADT has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 21 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ADT currently carries a Zacks Rank #3.
Highlights of Q3 Earnings
In third-quarter 2022, ADT reported adjusted earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 6 cents. Revenues of $1,604 million surpassed the Zacks Consensus Estimate of $1,567 million. Both the top and bottom lines improved substantially year over year.
Performance of Some Industrial Stocks
Within the broader Industrial Products sector, the following companies have recently reported earnings numbers.
Parker-Hannifin Corporation (PH - Free Report) , carrying a Zacks Rank #2, reported second-quarter fiscal 2023 (ended Dec 31, 2022) adjusted earnings (excluding $1.72 from non-recurring items) of $4.76 per share, which surpassed the Zacks Consensus Estimate of $4.45. The bottom line improved 6.7% year over year.
Parker-Hannifin’s total revenues of $4,674.8 million also outperformed the Zacks Consensus Estimate of $4,461.5 million. The top line jumped 22.2% year over year. Organic sales for the quarter increased 10.3% year over year. Orders were up 3% year over year.
Xylem (XYL - Free Report) , carrying a Zacks Rank #3, reported fourth-quarter 2022 adjusted earnings (excluding 10 cents from non-recurring items) of 92 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The bottom line increased 46% year over year.
Xylem’s revenues of $1,506 million also outperformed the Zacks Consensus Estimate of $1,415 million and rose 13.8% year over year. Organic sales in the quarter rose 20%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.