Resideo Technologies Stock Falls 21.5% Despite Q2 Earnings Beat
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Resideo Technologies shares are down 21.5% week-to-date heading into Friday's open, while the S&P 500 is up 0.5% over the same period. The company reported fiscal Q2 adjusted EPS of $0.83, beating the consensus estimate by $0.15, and revenue of $1.98 billion, about $40 million above forecasts, aided by tariff refunds that added 70 basis points to gross margin. Investors instead focused on full-year guidance of $2.9 billion to $2.95 billion in sales and $605 million to $625 million in adjusted EBITDA after the ADI Global Distribution spinoff.
Fiscal Q2 Results
Resideo Technologies reported fiscal second-quarter results for the period ended July 4, with adjusted earnings per share of $0.83. That figure beat the average analyst estimate by $0.15 per share. Revenue came in at $1.98 billion, roughly $40 million above the consensus forecast. The company said tariff refunds helped lift gross margin by 70 basis points.
Guidance and Spinoff
Resideo completed the spinoff of ADI Global Distribution at the beginning of August and now reports guidance excluding that unit. The company expects full-year sales between $2.9 billion and $2.95 billion and adjusted EBITDA between $605 million and $625 million. The ADI separation removes a major distribution business from Resideo's consolidated results, leaving the market to reassess the remaining smart-home technology operations. Yahoo Finance reported the stock was down 21.5% week-to-date through early Friday while the S&P 500 was up 0.5%.
What's Next
Resideo has not announced a date for its next financial update following the ADI Global Distribution spinoff. It remains unclear how the market will value the restructured company until more detailed standalone performance data becomes available.
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Resideo Technologies Stock Falls 21.5% Despite Q2 Earnings Beat
