Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray,
and over the past six months, the industry has shed 10.7%. This drop was worse than the S&P 500’s 5.2% fall.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
ADT shares are trading lower by 7% during Monday's session. ADT announced a secondary offering of 56 million shares held by Apollo Global Management affiliates.
ADT has had an impressive run over the past six months. While the S&P 500 has been flat, the stock has returned 9.2% and now trades at $7.92. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized consumer services stocks fared in Q4, starting with Mister Car Wash (NASDAQ:MCW).
Security technology and services company ADT (NYSE:ADT) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 3.1% year on year to $1.26 billion. The company’s full-year revenue guidance of $5.13 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $0.20 per share was 6.4% above analysts’ consensus estimates.
ADT reported fourth-quarter revenue of $1.3 billion, beating analyst estimates of $1.23 billion, according to Benzinga Pro. The company reported fourth-quarter adjusted earnings of 20 cents per share, beating analyst estimates of 19 cents per share.
ADT currently trades at $7.12 per share and has shown little upside over the past six months, posting a small loss of 3.3%. The stock also fell short of the S&P 500’s 7% gain during that period.
Looking back on specialized consumer services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Pool (NASDAQ:POOL) and its peers.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialized consumer services industry, including ADT (NYSE:ADT) and its peers.
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the specialized consumer services stocks, including LKQ (NASDAQ:LKQ) and its peers.
ADT reported third-quarter adjusted earnings per share of 20 cents, beating the estimate of 17 cents. The company reported quarterly revenue of $1.244 billion, surpassing the expected $1.218 billion.
