Resideo Q3 Earnings: Record Profits but Stock Plummets 23% Explained

Описание: Resideo Technologies reported a blockbuster Q3 2025 earnings beat with adjusted EPS soaring 51% year-over-year to $0.89, significantly surpassing Wall Street estimates. Despite record-high gross margins nearing 30% and adjusted EBITDA growth of 21%, the company's revenue slightly missed expectations, sparking a sharp market sell-off. The stock fell over 23% in a single day, wiping out billions in market value as investors reacted to cautious forward guidance and a revenue shortfall.

Management highlighted key strategic moves including a $1.59 billion lump sum payment to end Honeywell indemnification obligations, eliminating up to $140 million in annual payments, and advancing the integration of the $1.4 billion Snap One acquisition aimed at expanding smart home and pro-installer channels. The company also reiterated plans to spin off its ADI Global Distribution segment by the second half of 2026, aiming to unlock shareholder value through two focused public entities.

Looking ahead, Resideo faces near-term headwinds with a soft residential HVAC market and ERP implementation challenges impacting operations. However, analysts from Morgan Stanley and Oppenheimer maintain a bullish outlook citing strong long-term growth potential driven by product innovation and margin expansion. Investors remain cautious as the company navigates a transitional period marked by high volatility and a strategic pivot toward cleaner cash flows and operational resilience in the evolving smart home sector.

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