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 .