Earnings To Watch: Resideo (REZI) Reports Q2 Results Tomorrow

Home automation and security solutions provider Resideo Technologies (NYSE:REZI) will be reporting earnings this Tuesday afternoon. Here’s what investors should know.

Resideo beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $1.77 billion, up 19.1% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

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 15.2% year on year to $1.83 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.

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 has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.

Looking at Resideo’s peers in the building materials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Armstrong World delivered year-on-year revenue growth of 16.3%, beating analysts’ expectations by 5.2%, and Valmont reported revenues up 1%, topping estimates by 1.7%. Armstrong World traded up 12.6% following the results while Valmont was also up 7.9%.

Read our full analysis of Armstrong World’s results here and Valmont’s results here.

Investors in the building materials segment have had steady hands going into earnings, with share prices flat over the last month. Resideo is up 6.4% during the same time and is heading into earnings with an average analyst price target of $29.50 (compared to the current share price of $25).

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