U.S. Markets closed
  • S&P 500

    +8.31 (+0.18%)
  • Dow 30

    +15.73 (+0.04%)
  • Nasdaq

    +9.01 (+0.06%)
  • Russell 2000

    -16.56 (-0.72%)
  • Gold

    +0.30 (+0.02%)

    -0.0016 (-0.1392%)
  • 10-Yr Bond

    -0.0160 (-0.98%)
  • Vix

    +0.74 (+4.86%)

    -0.0004 (-0.0262%)

    +0.4510 (+0.3967%)

    -2,911.25 (-4.62%)
  • CMC Crypto 200

    -6.23 (-0.41%)
  • FTSE 100

    +54.80 (+0.76%)
  • Nikkei 225

    +505.60 (+1.77%)

Resideo (REZI) to Report Q1 Earnings: What's in the Cards?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Resideo Technologies, Inc. REZI is set to release first-quarter 2021 results on May 6, after market close.

Notably, the company’s earnings beat estimates thrice in the last four quarters, the earnings surprise being 198.91%, on average. In the last reported quarter, Resideo’s earnings of 80 cents per share missed the Zacks Consensus Estimate of 93 cents by 13.98%.

In the past three months, the company’s shares have gained 22.1% compared with the industry’s rise of 5.6%.

Factors at Play

Resideo is expected to have benefited from solid demand for its products and solutions across the residential end markets, supported by favorable trends in new construction activities. Also, recovery in demand environment in the commercial security markets is anticipated to have augmented its top-line performance in the first quarter. Further, growing popularity for its newly introduced products, such as the Pro series, might have supported its performance in the quarter.

Moreover, the company’s pricing, supply chain as well as channel initiatives are likely to have been beneficial in the to-be-reported quarter. In addition, several cost saving and restructuring actions undertaken by the company are anticipated to have helped it maintain a healthy margin performance.

Resideo’s investments in the e-commerce and digital selling tools aided it in driving e-commerce revenue sales significantly in fourth-quarter 2020. This trend is likely to have continued in the first quarter as well, given its focus on investing in digital sales tools to drive sales force effectiveness.

However, the lingering effects of the pandemic-related issues are likely to have adversely impacted the company’s performance. Also, Resideo’s investments related to product development and restructuring actions might have hurt its earnings in the first quarter.

Notably, the Zacks Consensus Estimate for first-quarter revenues from the Products & Solutions segment is currently pegged at $595 million, indicating growth of 25.3% from the year-ago quarter’s reported number. The consensus estimate for revenues from the ADI Global Distribution segment is pegged at $775 million, indicating an increase of 10.1% year over year.

Earnings Whispers

According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here as we will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Resideo has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 64 cents.

Resideo Technologies, Inc. Price and EPS Surprise

Resideo Technologies, Inc. Price and EPS Surprise
Resideo Technologies, Inc. Price and EPS Surprise

Resideo Technologies, Inc. price-eps-surprise | Resideo Technologies, Inc. Quote

Zacks Rank: The company carries a Zacks Rank #3.

Key Picks

Here are some companies you may want to consider as our model shows that these have the right combination of elements to deliver an earnings beat this season:

Alarm.com Holdings, Inc. ALRM has an Earnings ESP of +3.63% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SPX FLOW, Inc. FLOW has an Earnings ESP of +10.61% and a Zacks Rank #3, currently.

Eaton Corporation, plc ETN has an Earnings ESP of +1.96% and is presently Zacks #3 Ranked.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.

Click here for the 4 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

SPX FLOW, Inc. (FLOW) : Free Stock Analysis Report

Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report

Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research