Latest news with #Resideo
Yahoo
30-05-2025
- Business
- Yahoo
Q1 Earnings Highlights: Resideo (NYSE:REZI) Vs The Rest Of The Building Materials Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Resideo (NYSE:REZI) and its peers. Traditionally, building materials companies have built competitive advantages with economies of scale, brand recognition, and strong relationships with builders and contractors. More recently, advances to address labor availability and job site productivity have spurred innovation. Additionally, companies in the space that can produce more energy-efficient materials have opportunities to take share. However, these companies are at the whim of construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. Additionally, the costs of raw materials can be driven by a myriad of worldwide factors and greatly influence the profitability of building materials companies. The 9 building materials stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 0.6% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results. Resideo Technologies, Inc. (NYSE: REZI) is a manufacturer and distributor of technology-driven products and solutions for home comfort, energy management, water management, and safety and security. Resideo reported revenues of $1.77 billion, up 19.1% year on year. This print exceeded analysts' expectations by 3%. Overall, it was a very strong quarter for the company with a solid beat of analysts' EPS estimates and full-year EBITDA guidance exceeding analysts' expectations. "Resideo had a strong first quarter, reporting results at or above the high-end of the range for all of our key financial metrics. The ADI and Products and Solutions teams continued their excellent operational execution, with both segments generating organic net revenue growth, continued gross margin expansion, and healthy Adjusted EBITDA growth. We are re-affirming our 2025 outlook," said Jay Geldmacher, Resideo's President and CEO. Resideo scored the fastest revenue growth and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19% since reporting and currently trades at $20.77. Is now the time to buy Resideo? Access our full analysis of the earnings results here, it's free. The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE:TGLS) is a manufacturer of architectural glass, windows, and aluminum products. Tecnoglass reported revenues of $222.3 million, up 15.4% year on year, outperforming analysts' expectations by 3.3%. The business had an exceptional quarter with a solid beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 21.6% since reporting. It currently trades at $86.01. Is now the time to buy Tecnoglass? Access our full analysis of the earnings results here, it's free. Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors. UFP Industries reported revenues of $1.60 billion, down 2.7% year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates. UFP Industries delivered the slowest revenue growth in the group. As expected, the stock is down 7.7% since the results and currently trades at $98.26. Read our full analysis of UFP Industries's results here. Founded in 1909, Vulcan Materials (NYSE:VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel. Vulcan Materials reported revenues of $1.63 billion, up 5.8% year on year. This print came in 2.8% below analysts' expectations. Aside from that, it was a strong quarter as it logged a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Vulcan Materials had the weakest performance against analyst estimates among its peers. The stock is up 8.2% since reporting and currently trades at $265.31. Read our full, actionable report on Vulcan Materials here, it's free. Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies. Carlisle reported revenues of $1.10 billion, flat year on year. This number topped analysts' expectations by 0.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts' adjusted operating income estimates and a decent beat of analysts' EPS estimates. The stock is up 7.6% since reporting and currently trades at $387.34. Read our full, actionable report on Carlisle here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
20-05-2025
- Business
- Yahoo
REZI Q1 Earnings Call: Pricing Actions and Tariff Mitigation Drive Outperformance
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 19.1% year on year to $1.77 billion. The company expects next quarter's revenue to be around $1.83 billion, close to analysts' estimates. Its non-GAAP profit of $0.63 per share was significantly above analysts' consensus estimates. Is now the time to buy REZI? Find out in our full research report (it's free). Revenue: $1.77 billion vs analyst estimates of $1.72 billion (19.1% year-on-year growth, 3% beat) Adjusted EPS: $0.63 vs analyst estimates of $0.31 (significant beat) Adjusted EBITDA: $168 million vs analyst estimates of $168.5 million (9.5% margin, in line) The company reconfirmed its revenue guidance for the full year of $7.39 billion at the midpoint Adjusted EPS guidance for the full year is $2.35 at the midpoint, beating analyst estimates by 6% EBITDA guidance for the full year is $765 million at the midpoint, above analyst estimates of $730.3 million Operating Margin: 7.7%, in line with the same quarter last year Free Cash Flow was -$96 million compared to -$19 million in the same quarter last year Market Capitalization: $3.14 billion Resideo's first quarter results were shaped by a combination of higher sales volumes, successful new product launches, and disciplined price actions. Management pointed to strong demand for new offerings in both its Products and Solutions and ADI Distribution segments, highlighting the impact of the Snap One acquisition alongside robust organic growth. CEO Jay Geldmacher noted, "We achieved 6% organic revenue growth year-over-year at our Products and Solutions business segment," attributing results to both volume and pricing gains. Looking forward, Resideo management reaffirmed its full-year outlook, emphasizing a proactive approach to tariffs and ongoing price adjustments. CFO Michael Carlet explained that phased price increases are planned to help offset tariff costs throughout the year, with additional mitigation steps aimed at protecting margins. Management maintained a cautious stance on the macroeconomic environment, but expressed confidence that ongoing execution and cost control will help the company achieve its revenue and profit targets for 2025. Resideo's management cited several specific operational and strategic factors that contributed to first-quarter performance, as well as actions being taken in response to a dynamic external environment. The following insights summarize the main themes management discussed: Tariff Mitigation Strategy: Resideo is navigating evolving U.S. tariff policy through a combination of phased price increases, supplier negotiations, and a diversified manufacturing footprint. Management reported that about 98% of Products and Solutions goods sourced from Mexico are USMCA compliant and currently exempt from tariffs, reducing exposure for its largest U.S. business lines. New Product Momentum: Demand was strong for new product launches, including the Honeywell Home FocusPRO thermostats and First Alert VISTA H series security products. Management emphasized an "accelerating cadence of new product introductions" and highlighted the partnership with Google Nest for smart smoke and carbon monoxide alarms and the upcoming First Alert CX4 Camera Series. Snap One Integration Progress: The ADI segment saw significant contributions from the Snap One acquisition, including the launch of nearly 100 new products in the quarter. Integration is ahead of year two synergy goals, and cross-selling initiatives are driving revenue growth, especially in exclusive brands and commercial categories. Strength in Commercial Channels: ADI's commercial product categories, such as security and professional audio/video, showed notable growth, offsetting softness in the U.S. residential audio/video market. E-commerce also set new records for daily sales and contributed positively to margins. Margin Expansion Drivers: Gross margin improvements were attributed to operational efficiencies, favorable product mix, and the growing share of exclusive and higher-margin products. Management noted this was the eighth consecutive quarter of year-over-year gross margin expansion in Products and Solutions, reflecting structural improvements and supply chain optimization. Management's outlook for the next quarter and full year centers on pricing strategies, tariff mitigation, and continued new product introductions as key themes influencing guidance. The company is focused on maintaining margin stability while navigating uncertain market conditions. Tariff and Pricing Dynamics: Planned phased price increases are expected to offset tariff-related cost pressures, with management monitoring potential impacts on customer demand and competitive positioning. Product Launch Cadence: Management is prioritizing the rollout of new products across air, comfort, security, and water categories, viewing innovation as essential to sustaining revenue and margin growth. Macro and Housing Market Trends: While the company sees ongoing challenges in the U.S. housing market, management believes improving new home sales and stable remodeling activity could provide incremental tailwinds if macro conditions improve. Ian Zaffino (Oppenheimer): Asked about the impact of phased price increases on both demand and margin, especially in the context of tariff mitigation. Management replied that ADI expects to fully offset tariff costs, and Products and Solutions anticipates limited demand sensitivity due to proactive customer communication and the small share of products affected. Erik Woodring (Morgan Stanley): Inquired about customer buying behavior and whether there was evidence of customers pulling forward purchases ahead of price increases. Executives reported minimal buy-ahead activity, with demand remaining steady in both March and April. Erik Woodring (Morgan Stanley): Also questioned where Resideo sees itself in the broader residential and commercial spending cycle. Management described the residential environment as somewhat depressed due to low existing home sales but pointed to improvement in new home sales and resilience in remodeling. Amit Daryanani (Evercore ISI): Asked whether gross margins could exceed 30% if end markets improve. CFO Michael Carlet said ongoing structural improvements and new product launches should support continued gross margin expansion, though no specific targets were provided. No other analyst questions: There were no further analyst questions on the call beyond those summarized above. In coming quarters, the StockStory team will track (1) execution of phased price increases and the effectiveness of tariff mitigation, (2) the impact of new product launches—particularly in connected devices and smart home safety—on channel demand and margin mix, and (3) progress on integration synergies and cross-selling resulting from the Snap One acquisition. Additional attention will be paid to signs of recovery in the U.S. housing market, as well as any shifts in customer demand tied to price adjustments. Resideo currently trades at a forward EV-to-EBITDA ratio of 5.2×. Should you double down or take your chips? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
What To Expect From Resideo's (REZI) Q1 Earnings
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) will be announcing earnings results tomorrow after the bell. Here's what to look for. Resideo beat analysts' revenue expectations by 1.1% last quarter, reporting revenues of $1.86 billion, up 20.9% year on year. It was a mixed quarter for the company, with a decent beat of analysts' EPS estimates but a significant miss of analysts' adjusted operating income 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 15.7% year on year to $1.72 billion, a reversal from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average. Looking at Resideo's peers in the building materials segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vulcan Materials delivered year-on-year revenue growth of 5.8%, missing analysts' expectations by 2.8%, and Carlisle reported flat revenue, topping estimates by 0.6%. Vulcan Materials traded up 7.6% following the results while Carlisle was also up 6.1%. Read our full analysis of Vulcan Materials's results here and Carlisle's results here. There has been positive sentiment among investors in the building materials segment, with share prices up 13% on average over the last month. Resideo is up 12% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $17.55). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
