Home Automation and Security Stock Prices are Up

Both Alarm.com‘s and ADT’s stock price are up today. Both had strong 2015 Q3 earnings. Alarm.com is up 17% today and ADT is up 4.5%.

Why are both these stocks up?
Alarm.com
For one, Alarm.com is increasing their guidance for Q4 2015. For the full year 2015, they have beaten their guidance across all financial metrics:

For the full year 2015:

  • SaaS and license revenue is now expected to be approximately $139.9 million to $140.1 million, compared to the previous guidance range of $138.9 million to $139.3 million.
  • Total revenue is now expected to be approximately $197.7 million to $200.1 million, which includes anticipated hardware and other revenue for the year in the range of $57.8 million to $60.0 million. This compares to the previous guidance range of $193.9 million to $195.3 million, which included the previous hardware and other revenue guidance range of $55.0 million to $56.0 million.
  • Adjusted EBITDA is now expected to be approximately $27.7 million to $29.1 million, compared to the previous guidance range of $20.3 million to $21.3 million.
  • Non-GAAP adjusted net income is now expected to be approximately $14.9 million to $15.6 million, compared to the previous guidance range of $9.8 million to $10.3 million.

Why ADT?

They also beat expectations:

The company reported $0.51 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.03. The firm earned $899 million during the quarter, compared to analysts’ expectations of $897.05 million. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. During the same period in the prior year, the company posted $0.55 EPS.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th.

The home automation and security space is only going to continue to get larger as time goes on.

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