- Resideo Technologies ( NYSE: REZI ) has reported easy beat on both lines in its second quarter earnings results where revenue rose 14.2% to $1.69B.
- The figure tops analysts estimate by $30M as products and solutions segment delivered 28% revenue growth to $764M following the acquisition of First Alert in the prior quarter. Whereas, ADI global distribution segment revenue rose 5% to $922M.
- Total gross profit margin improved 160 basis points to 27.7% as compared to year-ago.
- However, the supply chain environment remained challenging during the period constraining the business' ability to fully meet demand in products division.
- The Texas-based building products company said demand was strongest in the distribution and retail channels, which offset expected declines in security.
- Operating profit was $186M, representing 11% of revenue, vs. $121M profit at 8.2% of revenue in Q2 2021.
- GAAP EPS of $0.63 beats by $0.07.
- The company ended the quarter with cash and cash equivalents and restricted cash of $255M and total outstanding debt of $1.4B.
- Q3 2022 Guidance: Revenue is forecasted between $1.67B to $1.72B vs. consensus of $1.66B, gross profit margin in the range of 27.0% to 28.0% and operating profit in the range of $165M to $175M.
- FY 2022 Outlook: Revenue is expected to be in the range of $6.45B to $6.65B vs. consensus of $6.54B , gross profit margin in the range of 27.5% to 28.5% and operating profit in the range of $690M to $720M.
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Resideo Technologies reports bullish outlook, earnings beat: Q2 Results