In This Article:
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Total Revenue: $1.83 billion, up 18% year over year, and up 4% on an organic basis.
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Gross Margin: Expanded by almost 200 basis points year over year.
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Adjusted EBITDA: $190 million, up 29% from $147 million in Q3 2023.
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Adjusted Earnings Per Share (EPS): $0.58 compared to $0.55 in the prior year.
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Operating Cash Flow: $147 million, a 145% increase from $60 million in Q3 last year.
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Products and Solutions Revenue: $645 million, up 4% organically, declined by 1% on a reported basis.
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Products and Solutions Gross Margin: 42.2%, up 350 basis points year over year.
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ADI Revenue: $1.18 billion, with 4% organic growth excluding Snap One contribution.
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ADI Sales Growth: 31% year over year, 4% organic growth.
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Fourth Quarter Revenue Outlook: $1.815 billion to $1.855 billion.
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Fourth Quarter Adjusted EBITDA Outlook: $170 million to $185 million.
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Full Year 2024 Revenue Outlook: $6.72 billion to $6.76 billion.
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Full Year 2024 Adjusted EBITDA Outlook: $672 million to $687 million.
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Full Year 2024 Operating Cash Flow Outlook: At least $375 million.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Resideo Technologies Inc (NYSE:REZI) reported strong third-quarter results with mid-single-digit organic revenue growth in both Products and Solutions and ADI segments.
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Total company gross margin expanded by almost 200 basis points year over year, driven by improvements in Products and Solutions and contributions from the Snap One acquisition.
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The integration of Snap One into ADI is progressing well, with synergy efforts on track to achieve $12 million in 2024 and targeting $75 million by 2026.
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The company achieved record sales in the retail channel and expanded in both the electrical distribution and HVAC channels.
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Resideo Technologies Inc (NYSE:REZI) reported a 29% year-over-year increase in adjusted EBITDA, delivering profitability above the high end of their outlook range.
Negative Points
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The existing home sales market in the United States remains soft, and there is weakness in the EMEA market, posing challenges to growth.
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Despite strong performance, the ADI segment faced lower gross margins due to diminished inflationary benefits and more competitive pricing in certain categories.
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SG&A expenses came in higher than anticipated due to some unusual one-time events, impacting overall cost management.
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The company anticipates the recent pace of gross margin expansion to slow until additional new products are introduced in 2025.
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There are continued headwinds in the security segment and challenging conditions in the EMEA market affecting product volumes.