{"id":57993,"date":"2022-12-12T09:49:32","date_gmt":"2022-12-12T14:49:32","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=57993"},"modified":"2022-12-12T09:50:07","modified_gmt":"2022-12-12T14:50:07","slug":"adt-hit-a-new-52-week-high","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2022\/12\/adt-hit-a-new-52-week-high\/","title":{"rendered":"ADT Hit a New 52-Week High"},"content":{"rendered":"

Provider of security, interactive, and smart home solutions ADT Inc. (ADT)<\/a> hit a new 52-week high of $9.82 on December 2, 2022. ADT\u2019s stock has gained 15.9% in price year-to-date and 16.9% over the past year to close the last trading session at $9.64.<\/p>\n

ADT\u2019s EPS and revenue surpassed the consensus estimates in the last quarter. Its EPS came 52.1% higher than analyst estimates, while its revenue beat the consensus estimate by 0.6%. Higher revenues from the CSB, Commercial, and ADT Solar segments drove revenues higher.<\/p>\n

Total CSB revenue increased 7% year-over-year to $1.11 billion in the third quarter, while its total Commercial revenue rose 12% year-over-year to $314 million. Furthermore, ADT\u2019s Solar segment contributed $179 million to its total revenue.<\/p>\n

ADT\u2019s President and CEO, Jim DeVries, said, \u201cADT\u2019s strong third-quarter results demonstrate our continued momentum \u2013 setting records in customer retention, RMR balance, and revenue payback. Our performance to date validates our progress on key initiatives, outlined earlier this year during our Investor Day, to meaningfully grow revenue, earnings, and cash flows, as well as reduce debt.\u201d<\/em><\/p>\n

<\/div>\n

On September 6, 2022, ADT announced that State Farm would make an equity investment of $1.20 billion in ADT, resulting in State Farm owning approximately 15% of ADT. ADT also announced a new partnership with State Farm to expand opportunities to combine next-generation security, innovative smart home technology, and reimagined risk-mitigation capabilities to monitor, detect, prevent, and minimize homeownership risks.<\/p>\n

Post the announcement, the stock had a gap-up opening and has not looked back since.<\/p>\n

\"ADT<\/a>
\n

Source: TradingView<\/em><\/center><\/small><\/p>\n

State Farm will also invest up to $300 million in an opportunity fund to support product innovation, technology, and marketing that seeks to differentiate and improve the customer experience for homeowners.<\/p>\n

The deal will help ADT reach new consumers with its various security products. ADT\u2019s President and CEO, Jim DeVries, said, \u201cThese new and expanded partnerships represent another bold step forward for our company and provide ADT more avenues to grow our customer base, strengthen brand loyalty, and lower customer acquisition costs.\u201d<\/em><\/p>\n

After its third-quarter earnings release, DeVries added, \u201cAdditionally, we were tremendously excited to announce our partnership with State Farm. A collaboration with such a marquee organization will serve as a significant future growth catalyst for ADT, and we look forward to continued positive momentum in 2023.\u201d<\/em><\/p>\n

For fiscal 2022, ADT expects its total revenue to be between $6.20 billion and $6.40 billion. Its adjusted EBITDA is expected to come between $2.33 billion to $2.43 billion and adjusted free cash flow between $550 million to $625 million.<\/p>\n

This State Farm deal is the second key deal signed by Jim DeVries. In September 2020, ADT secured a $450 million investment from Google. As part of the partnership with Google, ADT sells, installs, and services a full suite of Google Nest products, including doorbells, cameras, and thermostats.<\/p>\n

Post the State Farm investment; Google will be a 6% holder in ADT. Subject to fulfilling certain milestones, Google has committed $150 million to the company, raising its total success fund commitment with ADT to $300 million. <\/p>\n

Incremental funds will enable ADT to expand its access for more customers to smart home innovation and technologies via new sales programs and other activities.<\/p>\n

\n\t
\n\t\t

<\/p>\n\t\t

<\/p>\n\t\t

Can ADT live up to the expectations of its big investors, Google and State Farm?<\/strong><\/p>