By ADT reported a decline in sales for the fourth quarter, attributing the downturn to challenges in the solar business – a sector the company announced its departure from last month.
Financial Highlights
The home-security company revealed a fourth-quarter profit of $576 million, translating to 59 cents per share, as opposed to $151 million (16 cents per share) in the same period the previous year.
Adjusted Earnings Beat Expectations
When excluding one-time items and discontinued operations such as the solar division, adjusted earnings stood at 25 cents per share – surpassing the 5 cents per share projected by analysts surveyed by FactSet.
Revenue Drop and Future Projections
Although revenue saw a decline of over 7% amounting to $1.22 billion, it fell short of the expected $1.27 billion from analysts. Looking ahead, CEO Jim DeVries expressed confidence in the company’s streamlined focus on consumer security and smart home services after divesting the commercial sector and exiting solar operations.
Future Outlook
In its outlook for 2024, ADT aims for revenue between $4.8 billion and $5 billion, lower than analysts’ expectations of $5.3 billion. The company also foresees adjusted earnings ranging from 60 cents to 70 cents per share, exceeding the anticipated 46 cents per share.
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