UPDATE 1-ADT profit meets forecasts as price hikes lift sales
Nov 27 (Reuters) - Home security services company ADT Corp reported a slightly higher quarterly profit on Tuesday and said its board had approved buying back up to $2 billion in stock over three years.
The company, formerly a part of Tyco, reported net earnings of $94 million, or 40 cents per share, for the fourth quarter ended on Sept. 28, up from $93 million, or 39 cents per share, a year earlier.
Excluding special items, ADT said it had earned 43 cents a share, meeting Wall Street expectations, according to Thomson Reuters I/B/E/S.
Sales rose 2 percent to $812 million, with recurring revenue from existing customers accounting for almost all of the total.
The company provides security monitoring services to homes and small businesses in North America, while Tyco retains the ADT name in other regions.
Recent price hikes by ADT lifted average revenue per user, but led some customers to cut off service, pushing up attrition rates to 13.8 percent.
The Boca Raton, Florida-based company forecast a 4.9 percent to 5.2 percent rise in recurring revenue in fiscal 2013. It did not immediately provide an earnings-per-share outlook.