Home automation and security solutions provider Resideo Technologies (NYSE: REZI) will be reporting earnings this Tuesday after market close. Here’s what investors should know.
Resideo beat analysts’ revenue expectations last quarter, reporting revenues of $1.98 billion, up 2% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is Resideo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Resideo’s revenue to decline 61.8% year on year, a reversal from the 2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Resideo rarely misses Wall Street’s revenue estimates.
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. Carlisle delivered year-on-year revenue growth of 8.6%, beating analysts’ expectations by 2.7%, and Valmont reported revenues up 5.5%, falling short of estimates by 1.3%. Carlisle traded up 7.6% following the results while Valmont’s stock price was unchanged.
Read our full analysis of Carlisle’s results here and Valmont’s results here.
Investors in the building materials segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Resideo is up 16.6% during the same time and is heading into earnings with an average analyst price target of $29.83 (compared to the current share price of $19.40).
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