Company Overview - Resideo Technologies, Inc. (REZI) shares increased by 10.3% to close at $16.20, following a notable trading volume that exceeded typical levels. This comes after a 17.3% decline over the previous four weeks [1][2]. Market Impact - The rally in Resideo's shares was influenced by President Trump's announcement of a 90-day pause on tariffs for several countries, aimed at mitigating market sell-offs and concerns over potential recession due to higher tariffs [2]. Earnings Expectations - Resideo is projected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decrease of 19.2%. Revenue is anticipated to reach $1.74 billion, marking a 16.9% increase from the same quarter last year [3]. Earnings Estimate Trends - The consensus EPS estimate for Resideo has remained unchanged over the past 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions. Monitoring REZI's performance is advised to determine if the recent price increase can lead to further strength [4]. Industry Context - Resideo operates within the Zacks Security and Safety Services industry, where another company, MSA Safety, also experienced a price increase of 8.1% to $143.57, despite a 12.9% decline over the past month. MSA Safety's EPS estimate has remained stable at $1.59, showing a year-over-year change of -1.2% [4][5].

Investors in Resideo Technologies, Inc. (REZI) need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $12.50 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

New First Alert Smart Smoke & CO Alarm compatible with Google Home ecosystem and designed for seamless integration with Nest Protect Smart Smoke & CO AlarmSCOTTSDALE, Ariz., March 28, 2025  /PRNewswire/ -- First Alert, America's most trusted fire-safety brand* owned by Resideo (NYSE: REZI), and Google Home, a technology leader in the smart home, today announced a new life-safety collaboration. The new First Alert® Smart Smoke & Carbon Monoxide (CO) Alarm is compatible with the Nest Protect Smart Smoke & CO ...

Group 1 - The article discusses Resideo Technologies (NYSE: REZI) and highlights the less than encouraging indicators surrounding the housing market affecting the company [1] - The author has over 14 years of experience in stock analysis, focusing on both long and short positions, and has been covering the energy sector for 7 years, particularly the oilfield equipment services sector [1] - The author also covers the Industrial Supply industry and occasionally collaborates with other contributors [1]

Company Overview - Resideo Technologies, Inc. is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets [5] - The company is a leader in home heating, ventilation, and air conditioning controls, smoke and carbon monoxide detection, home safety and fire suppression products, and security products [5] - Resideo's solutions and services are present in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually [5] Upcoming Investor Conferences - Resideo is scheduled to participate in the 46th Annual Raymond James Institutional Investor Conference in Orlando, Florida on March 3, 2025, with a fireside chat featuring CFO Michael Carlet and President Robert Aarnes at 8:40 AM ET [2] - The company will also attend the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California on March 4, 2025, with President Thomas Surran and Global Head of Investor Relations Christopher T. Lee participating in a fireside chat at 1:05 PM PT [3] - Additionally, Resideo will be present at the JP Morgan 2025 Industrials Conference in New York, NY on March 13, 2025, where CFO Michael Carlet will participate in a fireside chat at 11:15 AM ET [3] Webcast Information - The fireside chats will be webcast live and available for replay on the Investor Relations page of the Resideo website, archived for a period of 30 days [4]

February 20, 2025 FY'24 and Q4'24 Results Presentation Disclaimer Forward-Looking Statements This presentation and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statemen ...

Financial Data and Key Metrics Changes - Total net revenue for 2024 was approximately $6.8 billion, representing an 8% year-over-year growth [8] - Adjusted EBITDA grew 17% year-over-year to approximately $700 million [8] - Total cash generated from operations reached a record $444 million, exceeding the outlook of at least $375 million [8][35] Business Segment Data and Key Metrics Changes - Products & Solutions experienced organic net revenue growth that rounded to flat year-over-year, with gross margins expanding by 240 basis points [9][10] - ADI achieved 2% organic net revenue growth year-over-year, driven by strength in digital channels and product categories [12] - ADI reported a 39% year-over-year growth in net revenue for Q4, with organic net revenue growth at 9% [24][32] Market Data and Key Metrics Changes - The global macroeconomic environment remains mixed, with U.S. dollar strength and potential tariff changes adding uncertainty for 2025 [13][36] - U.S. residential homebuilding is returning to normal levels, but the existing home resale market remains soft [37] Company Strategy and Development Direction - The company is focused on new product introductions, with successful launches in 2024 and more planned for 2025 [11][21] - Strategic investments in e-commerce are yielding positive returns, with a 22% year-over-year growth in e-commerce net revenue [26][27] - The integration of Snap One is progressing well, with run rate synergies achieved exceeding expectations [29][66] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating revenue growth in both business segments despite a mixed macro environment [39][82] - The company has comprehensive plans to address potential tariff changes, including price adjustments and operational strategies [13][56] Other Important Information - The company expects total net revenue for 2025 to be in the range of $7.285 billion to $7.485 billion [45] - Forecasted gross margin expansion of 100 to 150 basis points for 2025 compared to 2024 [42] Q&A Session Summary Question: Discussion on new product innovation and roadmap for 2025 - Management highlighted revitalization of existing product lines and positive reception of new products launched [50][51] Question: Inquiry about supply chain footprint and contingency plans regarding tariffs - Management provided insights into proactive customer engagement and various operational strategies to mitigate tariff impacts [55][56] Question: Clarification on ADI gross margin improvement and exclusive brand revenue contribution - Management noted that the growth in exclusive brands is expected to positively impact overall gross margin [63] Question: Discussion on Snap One synergies and integration progress - Management attributed the successful realization of synergies to effective integration strategies and collaboration between teams [68][69] Question: Inquiry about competitive landscape and pricing power in ADI - Management acknowledged competitive pricing pressures but emphasized the focus on margin-accretive channels like e-commerce and exclusive brands [76][78] Question: Organic growth assumptions for ADI and growth drivers - Management expressed confidence in continued growth driven by a strong opportunity pipeline and healthy backlog [82]

Core Viewpoint - Resideo Technologies reported quarterly earnings of $0.59 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.48 per share a year ago [1]. Financial Performance - The company achieved revenues of $1.86 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.07%, and up from $1.54 billion year-over-year [2]. - Over the last four quarters, Resideo has surpassed consensus EPS estimates three times and topped revenue estimates four times [2]. Stock Performance - Resideo Technologies shares have declined approximately 5.2% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3]. - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $1.74 billion, and for the current fiscal year, it is $2.46 on revenues of $7.35 billion [7]. - The estimate revisions trend for Resideo Technologies is mixed, which may change following the recent earnings report [6]. Industry Context - The Security and Safety Services industry, to which Resideo belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8].

Financial Performance - In 2024, the company reported net revenue of $6,761 million, an increase of 8.3% from $6,242 million in 2023[240]. - Gross profit for 2024 was $1,901 million, representing a gross margin of approximately 28.1%[240]. - The company’s net income available to common stockholders for 2024 was $91 million, a decrease of 56.7% compared to $210 million in 2023[240]. - Net income for 2024 was $116 million, a decrease of 44.8% compared to $210 million in 2023[244]. - Segment income from operations for Products and Solutions increased to $503 million in 2024 from $446 million in 2023, representing a growth of 12.8%[335]. - ADI Global Distribution's net revenue rose significantly to $4,197 million in 2024, up 17.5% from $3,570 million in 2023[332]. - The total segment income from operations for both segments combined was $698 million in 2024, slightly up from $684 million in 2023[335]. Assets and Liabilities - As of December 31, 2024, total assets increased to $8,199 million from $6,645 million in 2023, reflecting a growth of 23.2%[238]. - The company’s long-term debt rose to $1,983 million in 2024, up from $1,396 million in 2023, indicating a significant increase of 42%[238]. - Total accrued liabilities increased to $717 million in 2024 from $620 million in 2023, with significant components including obligations under indemnification agreements and customer rebate reserves[415]. - The total debt as of December 31, 2024, was $2,015 million, compared to $1,419 million in 2023[409]. Cash Flow and Investments - Cash and cash equivalents at the end of 2024 were $692 million, compared to $636 million in 2023, showing a growth of 8.8%[238]. - Net cash provided by operating activities increased slightly to $444 million in 2024 from $440 million in 2023[244]. - Net cash used in investing activities significantly increased to $(1,409) million in 2024 from $(44) million in 2023, primarily due to acquisitions[244]. - Proceeds from the issuance of long-term debt in 2024 amounted to $1,176 million, compared to no proceeds in 2023[244]. - Total cash, cash equivalents, and restricted cash at the end of 2024 was $693 million, up from $637 million at the end of 2023[244]. Research and Development - Research and development expenses for 2024 were $111 million, slightly up from $109 million in 2023[240]. - Research and development expenses for ADI Global Distribution were $17 million in 2024, reflecting a new investment focus[332]. - The company conducts research and development activities focused on new product development and enhancements to existing products[288]. Acquisitions and Divestitures - The company acquired Snap One Holdings Corp. for an aggregate purchase price of $1.4 billion, enhancing its market presence in smart home and audio-visual sectors[306]. - Snap One contributed $553 million in revenue for the year ended December 31, 2024, with an immaterial impact on operating income[311]. - The company sold the Genesis Cable business for $86 million, recognizing a pre-tax gain of $18 million[313]. - The company completed the acquisition of BTX Technologies, Inc. and Sfty AS in 2023, with no material adjustments reported[317][316]. Stock and Compensation - Stock-based compensation expense for Resideo Technologies was $64 million in 2024, compared to $43 million in 2023 and $48 million in 2022[369]. - The total unrecognized compensation cost related to unvested awards under the Stock Incentive Plan is $86 million, with $68 million for RSUs and $18 million for PSUs[375]. - The Stock Incentive Plan was amended to increase the number of shares available for issuance by 3.5 million shares, totaling 27.8 million shares available as of December 31, 2024[368]. Debt and Interest Rates - An increase in interest rates by 100 basis points would have an approximate $2 million impact on the company's annual interest expense[232]. - The weighted average interest rate for the A&R Term B Facility was 6.13%, down from 7.72% in 2023[397]. - In May 2024, the interest rate margin for the A&R Term B Facility was reduced from 2.25% to 2.00%, and the SOFR floor was reduced from 0.50% to 0%[390]. - In July 2024, the company issued $600 million in Senior Notes due 2032, with a maturity date of July 15, 2032, to repay $596 million of outstanding indebtedness[391]. Pension and Benefits - The funded status of U.S. pension plans showed a deficit of $28 million as of December 31, 2024, compared to a deficit of $37 million in 2023[347]. - The net periodic benefit cost for U.S. plans in 2024 was $4 million, compared to $12 million in 2023, while for non-U.S. plans it was $6 million in 2024, up from $4 million in 2023[349]. - The projected benefit obligation for U.S. plans decreased to $209 million in 2024 from $234 million in 2023, and for non-U.S. plans it decreased to $97 million from $106 million[355]. Environmental Liabilities - Environmental expenses related to operating sites were not material for the years ended December 31, 2024, 2023, and 2022, with liabilities for environmental costs recorded at $22 million for both 2024 and 2023[417]. - The Reimbursement Agreement obligates the company to make cash payments equal to 90% of certain Honeywell environmental-liability payments, with a cap of $140 million per year[419].

Financial Performance - Resideo Technologies reported full year 2024 net revenue of $6.76 billion, an increase of 8% compared to $6.24 billion in 2023, exceeding the high-end of the outlook range [6][12] - Full year 2024 net income was $116 million, or $0.61 per fully diluted share, down from $210 million, or $1.42 per diluted share in 2023 [12][28] - Adjusted EBITDA for 2024 was $693 million, up 17% from $590 million in 2023, with an Adjusted EBITDA margin of 10.2% [6][38] Fourth Quarter Highlights - Fourth quarter 2024 net revenue was $1.86 billion, a 21% increase year-over-year from $1.54 billion in Q4 2023 [6][13] - Fourth quarter net income was $23 million, down from $82 million in the same quarter of 2023 [13][28] - Adjusted EPS for Q4 2024 was $0.59, compared to $0.64 in Q4 2023 [13][32] Segment Performance - Products and Solutions segment generated net revenue of $2,564 million in 2024, a decrease of 4% compared to 2023, but showed slight positive growth when excluding the Genesis divestiture and foreign currency impacts [5][7] - ADI Global Distribution segment delivered net revenue of $4,197 million, an increase of 18% compared to 2023, driven by the inclusion of $553 million from the Snap One acquisition [10][18] Margin and Profitability - Full year 2024 gross margin was 28.1%, up 90 basis points from the prior year [12] - Products and Solutions gross margin for Q4 2024 was 40.8%, marking the seventh consecutive quarter of year-over-year improvement [6][12] - Operating profit for 2024 was $520 million, down 5% from $547 million in 2023 [12][28] Cash Flow and Liquidity - Cash provided from operating activities for 2024 was a record $444 million, exceeding the previous year's $440 million [6][14] - As of December 31, 2024, Resideo had cash and cash equivalents of $692 million and total outstanding debt of $2.02 billion [14][29] Outlook - For Q1 2025, Resideo expects net revenue in the range of $1,720 million to $1,770 million and for the full year 2025, net revenue is projected to be between $7,285 million and $7,485 million [15][16]