Resideo Technologies (NYSE:REZI) Releases Earnings Results, Beats Estimates By $0.04 EPS

Resideo Technologies (NYSE:REZI) issued its quarterly earnings results on Tuesday. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.04, FiscalAI reports. Resideo Technologies had a negative net margin of 7.27% and a positive return on equity of 15.15%. The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter in the previous year, the company earned $0.63 EPS. The company’s revenue for the quarter was up 8.0% on a year-over-year basis. Resideo Technologies updated its FY 2026 guidance to 3.000-3.200 EPS and its Q2 2026 guidance to 0.710-0.750 EPS.

Here are the key takeaways from Resideo Technologies’ conference call:

• Resideo beat the high end of its Q1 outlook across all metrics, with revenue up 8% year over year to more than $1.9 billion, adjusted EBITDA up 20% to $215 million, and adjusted EPS up 3% to $0.65.
• Management reaffirmed full-year 2026 guidance despite a soft and uncertain macro backdrop, saying it has pricing actions and operating initiatives in place to offset higher costs and weaker demand in some end markets.
• Products and Solutions continued to outperform with 9% revenue growth and its 12th straight quarter of gross margin expansion, supported by price, volume, and new product adoption in retail, OEM, security, and HVAC.
• ADI grew 8% year over year, led by security, professional AV, and data communications, but profitability was pressured by softer residential AV demand and higher freight-related costs.
• Resideo is advancing its separation plans, including the public filing of ADI’s Form 10 and a target to complete the spin-off between mid-Q3 and mid-Q4, while both future companies are expected to focus on deleveraging and standalone value creation.

Resideo Technologies Stock Down 13.9%

Shares of Resideo Technologies stock traded down $5.09 during trading on Wednesday, reaching $31.59. 510,467 shares of the company traded hands, compared to its average volume of 1,265,762. The firm has a market capitalization of $4.78 billion, a PE ratio of -7.74 and a beta of 1.75. Resideo Technologies has a 1-year low of $19.65 and a 1-year high of $45.29. The company has a 50 day moving average price of $36.92 and a 200-day moving average price of $36.18. The company has a debt-to-equity ratio of 1.30, a current ratio of 1.91 and a quick ratio of 1.14.

Institutional Investors Weigh In On Resideo Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of REZI. Royal Bank of Canada boosted its position in shares of Resideo Technologies by 50.0% during the 1st quarter. Royal Bank of Canada now owns 49,395 shares of the company’s stock worth $873,000 after purchasing an additional 16,467 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Resideo Technologies by 58.9% in the first quarter. AQR Capital Management LLC now owns 122,734 shares of the company’s stock worth $2,172,000 after acquiring an additional 45,517 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Resideo Technologies by 7.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 126,161 shares of the company’s stock valued at $2,233,000 after acquiring an additional 9,106 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Resideo Technologies by 1,123.6% in the 1st quarter. Millennium Management LLC now owns 263,821 shares of the company’s stock worth $4,670,000 after purchasing an additional 242,260 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Resideo Technologies by 6.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 439,149 shares of the company’s stock worth $7,773,000 after buying an additional 26,254 shares during the last quarter. 91.71% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts recently issued reports on REZI shares. Oppenheimer restated an “outperform” rating on shares of Resideo Technologies in a report on Friday, March 13th. Weiss Ratings reissued a “sell (d+)” rating on shares of Resideo Technologies in a research report on Tuesday, April 21st. Finally, Morgan Stanley boosted their price objective on Resideo Technologies from $42.00 to $50.00 and gave the company an “overweight” rating in a research note on Wednesday, February 25th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $39.67.

About Resideo Technologies

Resideo Technologies, Inc, headquartered in Austin, Texas, is a global provider of home comfort, security and energy management solutions. Formed as an independent company in 2018 following its spin-off from Honeywell, Resideo leverages decades of engineering experience to deliver connected products and services to residential and light commercial customers.

The company’s core offerings include smart thermostats, security systems, video doorbells, water leak and freeze detection devices, and indoor air quality monitors.