Why Resideo (REZI) Shares Are Sliding Today

Financial Performance - Resideo Technologies reported adjusted earnings per share (EPS) of $0.89, exceeding the forecast of $0.69 [2] - The company's revenue for the third quarter was $1.86 billion, slightly below the expected $1.87 billion [2] - For the fourth quarter, Resideo guided revenue of $1.87 billion, which is lower than analysts' estimates of $1.92 billion [2] - Management lowered its full-year adjusted EPS guidance by 6.8% to $2.62 at the midpoint [2] Market Reaction - Shares of Resideo fell 23.6% in the morning session following the mixed financial results [1] - The significant stock price decline indicates that investors were more concerned about the revenue shortfall and weak guidance than the positive earnings surprise [2] - Resideo's shares have shown volatility, with 15 moves greater than 5% over the last year, highlighting the impact of this news on market perception [4] Economic Context - The political stalemate in Washington is causing delays in the release of crucial economic data, affecting investor confidence [5] - Chief Economist at Moody's Analytics warned that 22 states are showing signs of recession, indicating a precarious position for the broader U.S. economy [6] - Rising short-term inflation expectations and deteriorating labor market outlook from consumers are likely to impact discretionary spending [6]