NYSE$REZI

Resideo Technologies Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Resideo's Q3 2023 financial results were announced, demonstrating resilience in a challenging market environment.

Resideo Technologies reported Q3 2023 net revenue of $1.55 billion, a decrease from $1.62 billion in Q3 2022. GAAP EPS was $0.14, and non-GAAP EPS was $0.41. The company experienced more stable end market conditions within Products and Solutions, driving revenue and profitability above the midpoint of their outlook. Strategic initiatives, including the sale of Genesis Cable and the purchase of Sfty, were executed during the quarter.

  • Net revenue was $1.55 billion, compared to $1.62 billion in Q3 2022.
  • GAAP EPS was $0.14, and non-GAAP EPS was $0.41, compared to GAAP EPS of $0.42 and non-GAAP EPS of $0.48 in Q3 2022.
  • Cash provided by operating activities was $60 million, up from $37 million in Q3 2022.
  • The company repurchased 1.8 million shares for $30 million as part of a $150 million repurchase program.

Headline financials

Total Revenue

$1.55B

Previous: $1.62B-4.0%
EPS (adj)

$0.41

Previous: $0.42-2.4%
Total Gross Margin

26.8%

Previous: 26.6%+0.8%
Capital Expenditures

-$74M

Previous: -$34M-117.6%
Free Cash Flow

-$53M

Previous: $29M-282.8%
Net Income

$21M

Previous: $63M-66.7%
Operating Income

$109M

Previous: $155M-29.7%
Gross Profit

$417M

Previous: $430M-3.0%
Cash & Equivalents

$368M

Previous: $252M+46.0%
Total Assets

$6.46B

Previous: $6.26B+3.1%
R&D Expense

$28M

No prior period
Stock-Based Comp

$11M

Previous: $14M-21.4%

Revenue & EPS history

Resideo · Revenue · Quarterly

$1.55B

Q3 2023-4%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Resideo · $1.55B total across 2 segments · Q3 2023

  • ADI Global Distribution
    $900M-1.2%
  • Products and Solutions
    $654M-7.5%

Forward guidance

The company provided its outlook for Q4 2023 and updated its full year 2023 outlook, reflecting the sale of Genesis in mid-October.

Tailwinds

  • Net revenue is expected to be between $1.495 billion and $1.545 billion for Q4 2023.
  • Gross profit margin is expected to be between 26.0% and 27.0% for Q4 2023.
  • Income from operations is expected to be between $135 million and $155 million for Q4 2023.
  • GAAP Earnings per share is expected to be between $0.43 and $0.53 for Q4 2023.
  • Non-GAAP Earnings per share is expected to be between $0.29 and $0.39 for Q4 2023.

Headwinds

  • Net revenue outlook for 2023 was reduced by approximately $25 million due to the sale of Genesis.
  • Operating income outlook for 2023 was reduced by approximately $4 million due to the sale of Genesis.
  • Net revenue is expected to be between $6.200 billion and $6.250 billion for the full year 2023.
  • Gross profit margin is expected to be between 26.6% and 27.2% for the full year 2023.
  • Non-GAAP Adjusted EBITDA is expected to be between $542 million and $562 million.

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 Q3 2023

Historical avgQ3 2023

+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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