NYSE$REZI

Resideo Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Resideo's Q2 2021 performance was marked by strong revenue growth and improved profitability.

Resideo Technologies reported a strong second quarter in 2021, with a 44% increase in revenue compared to the previous year. The company saw significant improvements in operating profit and gross profit margin, driven by strong demand and productivity improvements.

  • Net revenue increased by 44% to $1.5 billion compared to Q2 2020.
  • Gross profit margin improved to 25.8%, a 290 basis point increase year-over-year.
  • Operating profit was $121 million, a significant increase from the $6 million operating loss in Q2 2020.
  • Net income was $58 million, or $0.39 per diluted common share, compared to a net loss of $76 million in Q2 2020.

Headline financials

Total Revenue

$1.48B

Previous: $1.03B+43.5%
EPS (adj)

$0.39

Previous: $0.17+129.4%
Total Gross Margin

25.8%

Previous: 23.0%+12.2%
Capital Expenditures

$35M

No prior period
Free Cash Flow

$58M

Previous: -$76M+176.3%
Net Income

$58M

Previous: -$76M+176.3%
Operating Income

$121M

Previous: -$6M+2116.7%
Gross Profit

$381M

Previous: $236M+61.4%
Cash & Equivalents

$579M

Previous: $362M+59.9%
Total Assets

$5.71B

Previous: $5.17B+10.6%
Stock-Based Comp

$10M

Previous: $7M+42.9%

Revenue & EPS history

Resideo · Revenue · Quarterly

$1.48B

Q2 2021+43.5%vs Q2 2020
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Resideo · $1.48B total across 2 segments · Q2 2021

  • ADI Global Distribution
    $879M+39.3%
  • Products and Solutions
    $598M+50.3%

Forward guidance

Resideo updated its outlook for 2021, expecting full year revenue in the range of $5.85 billion to $5.95 billion, gross profit margin between 26% and 28%, and operating profit ranging from $535 million to $565 million. For the third quarter of 2021, the company anticipates revenue between $1.50 billion and $1.55 billion, gross profit margin from 26.5% to 28.5%, and operating profit in the range of $140 million to $150 million.

Tailwinds

  • Full year revenue expected to be in the range of $5.85 billion to $5.95 billion.
  • Gross profit margin for the full year is projected to be between 26% and 28%.
  • Operating profit for the full year is expected to be in the range of $535 million to $565 million.
  • Third quarter revenue is anticipated to be between $1.50 billion and $1.55 billion.
  • Third quarter gross profit margin is projected to be between 26.5% and 28.5%.

Headwinds

  • Challenging global logistics and supply chain environments are expected to continue.
  • The COVID-19 pandemic may continue to cause disruptions to the business and global economy.
  • Potential risks associated with agreements with Honeywell.
  • The company's transformation programs and initiatives may not continue to succeed.
  • Pending securities class action litigation settlement may face challenges in becoming effective.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.6%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+3.8%

Avg return

30 days after

62%

23 / 37 earnings

Positive

+63.4%

Q3 2020

Best reaction

-33.0%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.7%-24.5%-17.0%
Q4 2025+14.9%+7.2%-6.7%
Q3 2025-1.0%+1.6%+8.0%
Q1 2025+8.8%+21.0%+21.1%
Q4 2024-9.2%-10.8%-16.6%
Q3 2024+9.6%+14.0%+24.5%
Q2 2024-0.4%-2.0%-3.0%
Q1 2024+6.2%+8.0%+12.0%
Q4 2023+18.4%+24.8%+27.1%
Q3 2023+7.3%+11.2%+16.1%
Q2 2023-16.8%-14.4%-6.9%
Q1 2023-7.1%-5.5%-1.8%
Q4 2022+2.4%+3.8%-11.8%
Q3 2022-33.0%-31.9%-32.6%
Q2 2022+0.4%-2.4%-8.1%
Q1 2022+11.5%+4.9%+3.0%
Q4 2021+9.8%+3.7%+8.7%
Q3 2021-3.3%-0.6%-3.0%
Q2 2021+4.6%+0.0%+4.6%
Q1 2021+2.4%-4.4%+7.5%
Q4 2020-17.1%-10.9%+1.7%
Q3 2020+63.4%+62.9%+76.1%
Q2 2020+19.9%+19.4%+19.0%
Q1 2020+9.1%+21.1%+89.9%
Q4 2019+15.5%+14.6%-39.1%
Q3 2019-6.8%-14.0%+2.5%
Q2 2019-1.4%-10.0%-17.3%
Q1 2018-1.0%-1.7%-11.2%
Q1 2019-1.0%-1.7%-11.2%
Q2 2017+2.9%-1.2%+3.5%
Q1 2017+2.9%-1.2%+3.5%
Q4 2016+2.9%-1.2%+3.5%
Q2 2018+2.9%-1.2%+3.5%
Q4 2018-20.1%-17.9%-19.2%
Q3 2017+0.6%-1.6%+3.5%
Q3 2018+0.6%-1.6%+3.5%
Q4 2017+0.6%-1.6%+3.5%

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