Why did ADT's Q3 earnings exceed expectations?

ADT's Q3 earnings exceeded expectations due to strong revenue growth and strategic initiatives: 1. **Revenue Growth**: ADT's total revenue increased by 5.4% year-on-year to $1.24 billion, beating analysts' expectations by 1.4%. This growth was driven by a 3% increase in recurring monthly revenue and a 5% rise in new customer revenues. 2. **Strategic Initiatives**: ADT's focus on technology and partnerships has paid off, with the launch of its proprietary ADT-plus platform receiving positive feedback. The company has also made significant progress in its partnership with State Farm, resulting in installations and new customer RMR up 7% on a unit basis. Additionally, the acquisition of Star Equity Holdings has diversified ADT's operating portfolio and contributed to its revenue growth. 3. **Cost Management**: ADT has successfully reduced its leverage to below 3.0 times adjusted EBITDA, enhancing its capital structure and financial flexibility. The company has also announced a $500 million share repurchase authorization, reflecting confidence in its stock valuation and commitment to shareholder returns. In conclusion, ADT's Q3 earnings exceeded expectations due to strong revenue growth driven by strategic initiatives and effective cost management.