The following is a summary of the Resideo Technologies, Inc. (REZI) Q3 2024 Earnings Call Transcript:
Financial Performance:
Resideo Technologies reported Q3 2024 revenue of $1.83 billion, up 18% year-over-year and 4% organically.
Gross margin expanded by approximately 200 basis points year-over-year, driven by contributions from both the Products and Solutions and ADI business segments.
Adjusted EBITDA was $190 million, up 29% year-over-year, with profitability above the anticipated range.Third quarter fully diluted adjusted earnings per share was $0.58, compared to $0.55 in the previous year.
Business Progress:
Both the Products and Solutions and ADI segments achieved mid-single-digit year-over-year organic revenue growth.
Successful integration of Snap One with ADI ahead, anticipating $75 million annual run rate synergies by 2026 and $12 million in 2024.
Launched new products including the Honeywell Home Focus Pro series of thermostats and updates to the VISTA product line targeting residential and SMB markets.
Opportunities:
Positive indicators in the market such as improving interest rates and an uptick in new home sales in the U.S. are expected to drive future growth.
Continued expansion into the ProAV and Datacom sectors, highlighting potential in commercial categories.
Risks:
Persisting softness in existing home sales in the U.S. and weakness in the EMEA market pose challenges.
Competitive pricing and diminished inflationary benefits are impacting profitability, particularly in the ADI segment.
More details: Resideo Technologies IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
