Why Shares of ADT Are Down 10% Today
Shares of ADT (NYSE: ADT) traded down more than 12% on Wednesday morning after the security system specialist reported an unexpected loss in the second quarter. The loss appears to be due at least in part to one-time items, and the company provided an optimistic outlook for the future, but investors on Wednesday were in no mood to hang around.
After markets closed Tuesday, ADT reported a second-quarter loss of $0.02 per share on revenue of $1.284 billion, with earnings coming in well below the $0.16-per-share consensus estimate despite a slight beat over the $1.25 billion in projected revenue.
The company said in a statement that the net loss of $104 million, compared to a $67 million loss in the same three months of 2018, was due to a loss on the extinguishment of a $67 million debt, as well as a $28 million decline in "other" income year over year due to miscellaneous items from last year.
Quelle Fool.com
