Home automation and security solutions provider Resideo Technologies (NYSE:REZI) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Resideo beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.83 billion, up 17.6% year on year. It was a decent quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Resideo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Resideo’s revenue to grow 19.6% year on year to $1.84 billion, a reversal from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Resideo has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Resideo’s peers in the building materials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AZEK delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 7.9%, and Valmont reported revenues up 2.1%, topping estimates by 2.6%. AZEK traded up 2.5% following the results.
Read our full analysis of AZEK’s results here and Valmont’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the building materials stocks have shown solid performance, the group has generally underperformed, with share prices down 4.3% on average over the last month. Resideo is down 5.9% during the same time and is heading into earnings with an average analyst price target of $28.33 (compared to the current share price of $21.72).
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