REZI Earnings Prediction
The chart below shows how REZI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, REZI sees a +1.18% change in stock price 10 days leading up to the earnings, and a +0.82% change 10 days following the report. On the earnings day itself, the stock moves by -0.60%. This data can give you a slight idea of what to expect for the next quarter's release.
REZI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.86B
20.88%
1.64%
Gross Margin
26.96%
0.33%
-0.44%
Operating Margin
7.97%
-16.63%
-6.57%
Net Margin
1.24%
-76.78%
13.76%
EPS
0.08
-85.71%
14.29%
No Data Available
REZI Earnings Analysis
Resideo Technologies Inc Corporation (REZI.N) Earnings Conference Call
Positive
Net Revenue Growth 8%: Reported total net revenue of approximately $6.8 billion grew 8% year-over-year.
EBITDA Growth Achievement: Total adjusted EBITDA grew 17% year-over-year to approximately $700 million.
Record Cash Generation: Total cash generated from operations was $444 million, a new record and was well above our outlook of at least $375 million.
Organic Revenue Growth: Products & Solutions experienced growth in organic revenue and gross margins in 2024, with a year-over-year annual change in organic net revenue improving approximately 300 basis points versus 2023.
Gross Margin Expansion: Reported gross margins for 2024 expanded by 240 basis points year-over-year due to structural improvements that increased operational efficiency.
Organic Revenue Growth: ADI achieved 2% organic net revenue growth year-over-year in 2024, overcoming soft market conditions with strength in digital channels and product categories.
Integration Synergies Progress: The integration of Snap One into ADI is progressing well, achieving approximately $17 million of run rate synergies in 2024, approximately 40% higher than expected.
Q4 Net Revenue Increase: Fourth quarter total company net revenue was $1.86 billion, up 21% year-over-year and up 5% on an organic basis.
Gross Margin Improvement: Total company gross margin in the quarter was up 28.5%, up 100 basis points year-over-year, driven by continued operating efficiencies.
Q4 Adjusted EBITDA Growth: Fourth quarter total company adjusted EBITDA was $187 million, growing 26% year-over-year and exceeding the high end of the outlook range.
Negative
Revenue Decline in Q4: Organic net revenue for Products & Solutions declined approximately 1% year-over-year in Q4 2024 after excluding currency and divestiture impacts, indicating a slowdown in growth despite some positive trends in other channels.
Security Channel Performance Issues: The security channel experienced soft market conditions, which negatively impacted overall performance, highlighting a weakness in a key area of the business.
Cash Generation vs. Conversion Ratio: Despite achieving a record cash generation of $444 million, the company anticipates a lower free cash flow conversion ratio in 2025 compared to 2024 due to increased capital expenditures and ERP system implementation costs.
Macroeconomic Uncertainty Impact: The macroeconomic environment remains uncertain, with high U.S. mortgage rates and a soft existing home resale market, which could hinder future growth prospects.
Tariff Change Risks: The company has acknowledged potential tariff changes that could add uncertainty to 2025, indicating a risk factor that could impact financial performance.
Cautious Revenue Growth Forecast: While the company expects revenue growth in both business segments for 2025, the forecast is cautious and does not account for potential currency fluctuations or tariff changes, which could affect actual results.
REZI FAQs
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REZI Earning Call Sentiment
Resideo Technologies, Inc. (NYSE:REZI) Q4 2024 Earnings Call Transcript
REZI.N
-9.24%Positive
The earnings call highlights strong financial performance with record revenue and EBITDA, alongside successful product launches and synergy from acquisitions. Despite macroeconomic uncertainties and tariff concerns, management's proactive strategies and optimistic guidance provide confidence. The lack of a share buyback program is a minor drawback. Overall, the positive financial results and strategic initiatives outweigh potential risks, suggesting a positive stock price movement.
