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The ADT Corporation

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ADT reported relatively modest first-quarter fiscal 2016 results as adjusted earnings beat the Zacks Consensus Estimate by $0.03 on higher revenues. ADT has a distinct advantage over its rivals with a portfolio of well-recognized and reliable brands. The company is improving customer retention by heavily investing in its Pulse platform and expects to strengthen its position through organic growth across the industry verticals and increased market penetration. However, operating risks regarding high R&D costs for technology-driven products, high integration costs for acquired firms, evolving government laws and regulations, and intense competitive pressures due to low barriers to entry remain headwinds for the company. The economics of the installation business also varies depending on the customer acquisition channel and remains an additional concern for ADT.

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