Resideo Q2 adjusted EPS beats estimates on record revenue, margin gains
REZI•Analyst coverage and valuation
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the communications & networking peer group is "buy"
- Wall Street's median 12-month price target for Resideo Technologies, Inc. is $48.12, about 98.5% above its August 11 closing price of $24.24
- The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Outlook for Q3 and full-year 2026
- Resideo sees standalone Q3 2026 revenue of $705 mln to $730 mln
- Company expects standalone Q3 2026 adjusted EBITDA of $145 mln to $155 mln
- Resideo forecasts standalone 2026 revenue of $2.9 bln to $2.95 bln
Drivers of revenue and margin performance
- PRODUCT VOLUME - Co said Products & Solutions revenue grew due to higher sales volumes across most channels and product families from increased customer demand
- TARIFF REFUNDS - Gross margin benefited from $27 mln in tariff refunds, with about $20 mln received by ADI
- SEGMENT MIX - ADI revenue growth driven by security, professional audio-visual, and data communications categories, offset by weakness in residential audio-visual due to continued soft U.S. housing market
