Resideo’s second quarter saw a positive market reaction as the company delivered results ahead of Wall Street expectations, driven by strong demand for new products and effective execution in both its ADI distribution and Products & Solutions segments. Management attributed the performance to higher volumes in commercial security, fire, and professional audio/video products, as well as robust sales of Honeywell Home FocusPRO thermostats and First Alert smoke detectors. CEO Jay Geldmacher highlighted, “Demand for our new products, including the Honeywell Home FocusPRO thermostats and First Alert connected detectors continues to be strong.”
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 22.3% year on year to $1.94 billion. The company expects next quarter’s revenue to be around $1.88 billion, close to analysts’ estimates. Its non-GAAP profit of $0.66 per share was 24.5% above analysts’ consensus estimates.
Aviation and fleet aftermarket services provider VSE Corporation (NASDAQ:VSEC) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 41.1% year on year to $272.1 million. Its non-GAAP profit of $0.97 per share was 38.2% above analysts’ consensus estimates.
Commvault’s Q2 results saw a significant positive market reaction, as the company outperformed Wall Street’s expectations for both revenue and non-GAAP profit. Management pointed to accelerated growth in its SaaS platform and strong customer expansion across industries as the main drivers of the quarter. CEO Sanjay Mirchandani specifically highlighted that, “SaaS ARR soared 63% to $307 million,” and emphasized the company’s progress in landing and expanding major enterprise accounts, including notable wins with Honeywell and Equifax. The quarter also featured growth in cloud marketplace transactions and healthy uptake of new products such as Cleanroom Recovery and Air Gap Protect.
Data backup provider Commvault (NASDAQ:CVLT) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 25.5% year on year to $282 million. Guidance for next quarter’s revenue was better than expected at $273 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $1.01 per share was 4.1% above analysts’ consensus estimates.
Shares of home automation and security solutions provider Resideo Technologies (NYSE:REZI)
jumped 12.9% in the afternoon session after an upgrade from Morgan Stanley, which raised its rating on the stock to Overweight from Equal-Weight. The investment bank boosted its price target to $35 from a previous $24. The upgrade was driven by several positive developments, including Resideo's strong second-quarter results, which surpassed the high end of guidance and marked the best organic revenue growth in 15 quarters. Additionally, analysts highlighted the recent cancellation of a "longstanding and complex" indemnification agreement with Honeywell. This move is seen as removing a significant structural barrier for investors and creating a clearer path to what Morgan Stanley estimates could be approximately $3 in earnings power. The company's plan to separate its ADI Global distribution business in 2026 was also noted as a potential catalyst for unlocking shareholder value.
Resideo Technologies (REZI) ended Honeywell indemnification with $1.59B buyout, leading to cleaner earnings, upgraded price forecast of $35 by Morgan Stanley.
The financial markets are abuzz with renewed speculation of an impending Federal Reserve interest rate cut, following the release of the July 2025 Consumer Price Index (CPI) report. Despite a nuanced picture presented by the data, with headline inflation showing a milder-than-expected increase, investors are increasingly betting on lower borrowing
Shares of home automation and security solutions provider Resideo Technologies (NYSE:REZI)
jumped 7.5% in the afternoon session after the company reported record second-quarter financial results that beat analyst expectations and raised its full-year guidance. The company posted record revenue of $1.94 billion, a 22% increase from the previous year, and adjusted earnings per share of $0.66. These figures surpassed Wall Street's forecasts. While Resideo recorded a net loss of $825 million, this resulted from a one-time expense to end an agreement with Honeywell. Investors appeared to focus on the strong operational performance, as both its Products and Solutions and ADI segments achieved organic revenue growth. In a sign of confidence, the company also lifted its full-year 2025 financial outlook and announced plans to spin off its ADI business segment.
The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
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Honeywell’s second quarter results came in above Wall Street’s revenue and profit expectations, but the market responded negatively, focusing on margin compression and underlying operational challenges. Management highlighted that strong organic sales in Defense and Space, as well as Building Automation, were partially offset by cost inflation and higher research and development spending. CEO Vimal Kapur pointed to “accelerated R&D spend” and near-term inventory headwinds, while CFO Mike Stepniak noted that “tariff-related cost inflation pushed up inventory levels.” The company acknowledged that higher investment in future growth weighed on current margins.
Shares of home automation and security solutions provider Resideo Technologies (NYSE:REZI)
jumped 15.6% in the morning session after the company announced a trio of significant strategic updates, including the planned spin-off of its ADI Global Distribution business, a settlement of its long-term payment obligations with Honeywell, and an optimistic outlook for its second-quarter financial results. The series of announcements included a plan to separate its ADI Global Distribution business into an independent, publicly traded company via a tax-free spin-off. This move was designed to unlock shareholder value and provide greater strategic flexibility for both entities. Additionally, Resideo reached a definitive agreement with Honeywell to make a one-time cash payment of $1.59 billion, which terminated all future annual payment obligations of up to $140 million. This settled a long-standing financial overhang for the company. Capping off the positive news, Resideo also stated that it expected its second-quarter 2025 financial results for revenue, adjusted EBITDA, and adjusted earnings per share to finish above the high-end of its previously issued guidance, signaling strong underlying business performance.
Industrial equipment and engineered products manufacturer Albany (NYSE:AIN)
will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Material handling equipment manufacturer Columbus McKinnon (NASDAQ:CMCO)
will be reporting results this Wednesday morning. Here’s what investors should know.
The Dow Jones (^DJI) is made up of 30 of the most established and influential companies in the market.
But even blue-chip stocks can struggle - some are dealing with slowing growth, outdated business models, or increasing competition.
