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.
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.
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.
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) reported revenue ahead of Wall Street’s 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.
Resideo Technologies reports record Q2 earnings, beating revenue and EPS estimates. Shares surge as company raises full-year outlook, driven by strong demand in comfort and security solutions.
Home automation and security solutions provider Resideo Technologies (NYSE:REZI)
will be reporting earnings this Tuesday afternoon. Here’s what investors should know.
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.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
A number of stocks jumped in the afternoon session after the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Resideo (NYSE:REZI) and its peers.
Home automation and security solutions provider Resideo Technologies (NYSE:REZI) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 19.1% year on year to $1.77 billion. The company expects next quarter’s revenue to be around $1.83 billion, close to analysts’ estimates. Its non-GAAP profit of $0.63 per share was significantly above analysts’ consensus estimates.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
