ADT Stock Rising on Earnings Beat
NEW YORK (TheStreet) -- ADT (ADT) - Get Report stock is up by 3.26% to $33.61 on heavy volume in early afternoon trading on Wednesday, after the company's 2015 fourth quarter earnings results beat analysts' expectations.
Before the market open on Wednesday, the Boca Raton, FL-based security company reported 2015 fourth quarter earnings of 51 cents per share.
Revenue increased to $899 million, up from $883 million for the year-ago period.
Analysts surveyed by Zacks Investment Research were expecting the company to report earnings of 48 cents per share on revenue of $908 million.
"We met or exceeded our major financial and operational goals for the year, and delivered another year of improved performance," CEO Naren Gursahaney said in a statement. "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."
So far today, 3.57 million shares of ADT have traded, versus its 30-day average of 1.49 million shares.
Separately, TheStreet Ratings team rates ADT CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate ADT CORP (ADT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: ADT
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