NYSE$REZI

Resideo Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong Q3 2024 results with organic sales growth and Adjusted EBITDA exceeding outlook, driven by Products and Solutions and ADI performance.

Resideo Technologies reported strong third-quarter results with net revenue of $1.83 billion, up 18% year-over-year. Adjusted EBITDA was $190 million, exceeding the high end of the outlook range. The company saw organic sales growth in both Products and Solutions and ADI, with Products and Solutions gross margin improving to 42.2%.

  • Net revenue increased by 18% year-over-year.
  • Products and Solutions achieved a gross margin of 42.2%, marking the sixth consecutive quarter of improvement.
  • Adjusted EBITDA reached $190 million, surpassing the high end of the outlook range.
  • Strong demand was observed for the Honeywell Home Focus Pro thermostat portfolio.

Headline financials

Total Revenue

$1.83B

Previous: $1.55B+17.6%
EPS

$0.07

Previous: $0.41-82.9%
Adjusted EBITDA

$190M

No prior period
Total Gross Margin

42.2%

Previous: 26.8%+57.5%
Capital Expenditures

-$58M

Previous: -$74M+21.6%
Free Cash Flow

-$38M

Previous: -$53M+28.3%
Net Income

$20M

Previous: $21M-4.8%
Operating Income

$126M

Previous: $109M+15.6%
Gross Profit

$524M

Previous: $417M+25.7%
Cash & Equivalents

$531M

Previous: $368M+44.3%
Total Assets

$8.14B

Previous: $6.46B+25.9%
R&D Expense

$23M

Previous: $28M-17.9%
Stock-Based Comp

$15M

Previous: $11M+36.4%

Revenue & EPS history

Resideo · Revenue · Quarterly

$1.83B

Q3 2024+17.6%vs Q3 2023
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 the fourth quarter of 2024, expecting net revenue between $1.815 billion and $1.855 billion, Non-GAAP Adjusted EBITDA between $170 million and $185 million, and Non-GAAP Adjusted Earnings per share between $0.51 and $0.61. For the full year 2024, the company expects net revenue between $6.720 billion and $6.760 billion, Non-GAAP Adjusted EBITDA between $672 million and $687 million, and Non-GAAP Adjusted Earnings per share between $2.18 and $2.28. Full Year Cash Provided by Operating Activities At least $375

Tailwinds

  • Net revenue is projected to be between $1.815B - $1.855B
  • Non-GAAP Adjusted EBITDA is expected to be between $170M - $185M
  • Non-GAAP Adjusted Earnings per share are forecasted to be $0.51 - $0.61
  • Full year net revenue is projected to be between $6.720B - $6.760B
  • Full year Non-GAAP Adjusted EBITDA is expected to be between $672M - $687M

Headwinds

  • The company did not explicitly state any negatives in their forward guidance
  • The company did not explicitly state any negatives in their forward guidance
  • The company did not explicitly state any negatives in their forward guidance
  • The company did not explicitly state any negatives in their forward guidance
  • The company did not explicitly state any negatives in their forward guidance

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 2024

Historical avgQ3 2024

+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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