ADT (ADT) is expected to report in-line Q3 results and reiterate its fiscal 2025 guidance, with growth expected to moderate in the second half of the year due to tougher comparisons in the Installation segment, RBC Capital Markets said in an earnings preview.

The brokerage said in a Monday note that continued adoption of ADT+, the company's smart security platform, along with its Google partnership, Remote Assistance program, and AI initiatives, should support both revenue and earnings growth.

RBC estimated Q3 revenue growth of 3.7% to about $1.29 billion and earnings per share of $0.22, compared with consensus estimates of $1.29 billion and $0.21, respectively. Regarding tariffs, the firm said ADT continues to believe it can absorb its tariff exposure within its 2025 guidance range.

ADT is also expected to reaffirm its fiscal 2025 guidance, including revenue of $5.025 billion to $5.225 billion, compared with RBC's estimate of $5.15 billion and consensus of $5.139 billion, and adjusted EPS of $0.81 to $0.89, versus RBC's estimate of $0.88 and consensus of $0.86.

ADT's Installation segment continues to benefit from the shift toward the ADT+ platform and equipment sales, with average installation revenue of about $1,500, aided by reduced discounts and promotions, RBC said, while noting tougher year-on-year comparisons for the business.

The firm also pointed to solid free cash flow and proceeds from the sale of the Multifamily division as potential sources for product investment and share buybacks.

RBC has a sector perform rating on ADT with a $9 price target.

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