Home automation and security solutions provider Resideo Technologies (NYSE: REZI) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
Resideo beat analysts’ revenue expectations last quarter, reporting revenues of $1.90 billion, up 2% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations 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 for active Edge members.
This quarter, the market is expecting Resideo’s revenue to grow 6.1% year on year, slowing from the 19.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Vulcan Materials delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 5.8%, and Valmont reported revenues up 6.2%, topping estimates by 3%. Vulcan Materials traded up 3.5% following the results while Valmont was also up 13.9%.
Read our full analysis of Vulcan Materials’s results here and Valmont’s results here.
There has been positive sentiment among investors in the building materials segment, with share prices up 3.5% on average over the last month. Resideo is up 4.4% during the same time and is heading into earnings with an average analyst price target of $49 (compared to the current share price of $39.91).
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