Financial News
Resideo (REZI) Q3 Earnings: What To Expect
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
Resideo beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $1.59 billion, flat year on year. It was a satisfactory quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ operating margin 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 17.1% year on year to $1.82 billion, a reversal from the 4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
The majority of analysts covering the company have 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 four times over the last two years.
Looking at Resideo’s peers in the building materials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Armstrong World delivered year-on-year revenue growth of 11.3%, meeting analysts’ expectations, and Valmont reported a revenue decline of 2.9%, in line with consensus estimates. Armstrong World traded up 2.3% following the results while Valmont was also up 10.5%.
Read our full analysis of Armstrong World’s results here and Valmont’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 2.7% on average over the last month. Resideo is up 3.3% during the same time and is heading into earnings with an average analyst price target of $25.33 (compared to the current share price of $20.54).
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