ADT Beats Q2 Earnings Estimates, Sells Commercial Business For $1.6B To Curb Debts
Portfolio Pulse from Nabaparna Bhattacharya
ADT Inc. reported a Q2 2023 sales decline of 0.5% to $1.59 billion, missing the consensus of $1.65 billion. However, its adjusted EPS of $0.16 beat the consensus of $0.06. The company plans to sell its commercial security, fire, and life safety business unit to GTCR for $1.6 billion, with proceeds expected to reduce debt by $1.5 billion. ADT lowered its FY23 sales guidance to $6.30 billion-$6.50 billion.
August 08, 2023 | 2:15 pm
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NEGATIVE IMPACT
ADT's Q2 sales missed estimates but EPS beat expectations. The company's plan to sell its commercial business to reduce debt could improve its financial health. However, the lowered FY23 sales guidance may negatively impact investor sentiment.
ADT's Q2 sales missed estimates, which could negatively impact the stock. However, the EPS beat and the plan to sell its commercial business to reduce debt could be seen as positive by investors. The lowered FY23 sales guidance could further negatively impact the stock as it indicates potential future underperformance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100