Resideo Technologies Inc (REZI) Reports Q3 2023 Earnings: Net Revenue of $1.55 Billion
Resideo Technologies Inc (NYSE:REZI) reported a net revenue of $1.55 billion in Q3 2023, compared to $1.62 billion in Q3 2022.
The company's income from operations was $109 million, including restructuring charges of $38 million.
Resideo repurchased 1.8 million shares for $30 million as part of a $150 million repurchase program.
The company also reported a GAAP EPS of $0.14 and non-GAAP EPS of $0.41.
Resideo Technologies Inc (NYSE:REZI), a leading global manufacturer and developer of technology-driven products for home comfort, energy management, and safety and security solutions, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023.
Financial Highlights
Resideo reported a net revenue of $1.55 billion in Q3 2023, down from $1.62 billion in the same period in 2022. The company's income from operations was $109 million, including restructuring charges of $38 million, compared to $155 million in Q3 2022. The company's GAAP EPS was $0.14 and non-GAAP EPS was $0.41, compared to GAAP EPS of $0.42 and non-GAAP EPS of $0.48 in Q3 2022.
Management Remarks
We experienced more stable end market conditions and order activity within Products and Solutions in the third quarter, driving revenue and profitability, excluding restructuring, above the midpoint of our outlook, commented Jay Geldmacher, Resideos President and CEO. Despite a challenging market environment, I am confident that we are taking the necessary steps to position the business for profitable growth and we remain focused on executing against our strategic priorities.
Products and Solutions Performance
Resideo's Products and Solutions segment reported a net revenue of $654 million in Q3 2023, down 7% compared to Q3 2022. The gross margin was 38.7%, up 250 basis points compared to the same period in 2022. The operating profit for the quarter was $107 million, including $25 million of restructuring costs.
ADI Global Distribution Performance
The ADI Global Distribution segment reported a net revenue of $900 million in Q3 2023, down 1% compared to Q3 2022. The gross margin was 18.3%, down 100 basis points compared to the same period in 2022. The operating profit for the quarter was $60 million, including $10 million of restructuring costs.
Outlook
Resideo's outlook for Q4 2023 and the full year 2023 reflects the sale of Genesis in mid-October, which reduces the previously communicated 2023 outlook by approximately $25 million of revenue and $4 million of operating income. The company expects a net revenue of $1,495 - $1,545 million for Q4 2023 and $6,200 - $6,250 million for the full year 2023.
Explore the complete 8-K earnings release (here) from Resideo Technologies Inc for further details.
This article first appeared on GuruFocus.
