The ADT Corporation (NYSE: ADT)
The ADT Corporation (ADT), a home and business security monitoring company on Tuesday reported positive fourth quarter and full year 2015 financial results. Total revenue was $899 an increase of 1.8% over fourth quarter 2014. EBITDA before special items was $460 million, up $2 million from fourth quarter 2014.
The ADT Corporation CEO Comments
“We met or exceeded our major financial and operational goals for the year, and delivered another year of improved performance,” said Naren Gursahaney, ADT’s CEO. “We also strengthened our competitive position through investing in our business and establishing new strategic partnerships, positioning us well for the future as we execute upon our strategy to further improve customer retention, drive quality growth, and improve cash generation.”
“We ended the year with a solid quarter, enabling us to meet or exceed our major commitments for the year and positioning us well for 2016,” said Naren Gursahaney, ADT’s chief executive officer. “In our third year as a public company, we continued to build on our market leadership position by focusing on quality customer additions and enhancing the customer experience, as evidenced by a significant improvement in customer retention, which remains our team’s top priority. We are also investing in new business opportunities and are encouraged by the progress we are making in expanding into the Commercial market, growing our Health business, and preparing to enter the previously unpenetrated residential market segments. We expect these efforts to continue to fuel improvements in our operational and financial performance, creating long term value for our shareholders,” he added. Globe Newswire
ADT Technical Analysis
ADT gapped up in price yesterday to $34.34, up from the prior day’s close of $32.55, which is a 5% increase on the favorable news. Taking a look at the daily chart, we can see the last time ADT traded above this price level was on July 31st, when it closed at $34.53. Taking a further look back on the chart, we can see ADT has been on an overall decline dating back to April 15th when it was trading at its 52 week high of $42.88. More recently, ADT has been rebounding of its 52 week lows of $29.34 reached on October 2nd. ADT does have a high float of 169.4 million shares and was trading 2 times the normal daily trading volume. ADT did reach pre market highs of $36, but gave back $1.66 at the open, or equivalent to 5%. For trading purposes, my entry point would have been $34.50 looking for a run through $35. My stop loss would have been $34.30, fearing anything below that and the stock would start to fill in the gap up.
The ADT Corporation provides monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. The companys monitored security and home/business automation offerings include the installation and monitoring of residential and business security, and premises automation systems designed to detect intrusion, control access and react to movement, smoke, carbon monoxide, flooding, temperature, and other environmental conditions and hazards, as well as to address personal emergencies, such as injuries, medical emergencies, or incapacitation. It also provides various alternate and back-up alarm transmission methods, including cellular and broadband Internet; monitoring center supported personal emergency response system products and services; and customer service for maintenance and the installation of upgraded or additional equipment. The company offers its products primarily under the brand ADT and ADT Pulse to residential customers, including owners of single-family homes, as well as small business customers, which include retail businesses, food and beverage service providers, medical offices and clinics, mechanical and auto-body shops, professional service providers, and small-scale commercial facilities. It markets its products through independent authorized dealers, affinity organizations, and third-party referral companies. The ADT Corporation was founded in 1874 and is headquartered in Boca Raton, Florida. Yahoo Finance