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Investing.com -- Resideo Technologies, Inc. (NYSE:REZI) shares surged 6.7% after the home technology company reported second quarter earnings that significantly exceeded analyst expectations and raised its full-year outlook.
The manufacturer of sensing and controls products posted adjusted earnings per share of $0.66 for the second quarter, handily beating the analyst estimate of $0.54. Revenue reached a record $1.94 billion, up 22% YoY and exceeding the consensus estimate of $1.83 billion. The company achieved organic growth across both its business segments despite challenging market conditions.
Resideo’s stock jumped following the results as investors responded positively to the company’s strong performance and raised guidance. For the full year 2025, Resideo now expects earnings of $2.75-$2.87 per share, well above the analyst consensus of $2.43, and revenue of $7.45-7.55 billion, surpassing the consensus of $7.39 billion.
"Resideo had an exceptional second quarter, reporting record high results that were above the high-end of the range for all our key financial metrics," said Jay Geldmacher, Resideo’s President and CEO. "Both the ADI and Products and Solutions segments generated organic net revenue growth, gross margin expansion, and robust Adjusted EBITDA growth."
The company’s Products and Solutions segment saw revenue increase 6% YoY to $666 million with gross margin expanding 160 basis points to 42.9%. ADI Global Distribution revenue jumped 33% to $1.28 billion, with gross margin improving 280 basis points to 22.2%.
Despite reporting a net loss of $825 million due to an $882 million expense related to terminating an agreement with Honeywell (NASDAQ:HON), adjusted EBITDA reached a record $210 million, up 20% from the prior year.
For the third quarter, Resideo expects revenue of $1.85-1.9 billion and adjusted earnings of $0.70-$0.76 per share, compared to analyst estimates of $1.88 billion and $0.59 per share, respectively.
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