Resideo Q1 2021 Earnings Report
Key Takeaways
Resideo Technologies reported a strong first quarter with a 20% increase in net revenue to $1.4 billion. The company saw improvements in gross profit margin and operating profit, driven by strong performance in both Products & Solutions and ADI Global Distribution segments. Net income was $49 million, a significant improvement compared to the net loss in the prior year.
Net revenue increased by 20% to $1.4 billion compared to Q1 2020.
Gross profit margin improved by 180 basis points to 25.9%.
Operating profit rose to $130 million, a $96 million increase from the previous year.
Net income was $49 million, a substantial improvement from the $21 million net loss in Q1 2020.
Resideo
Resideo
Resideo Revenue by Segment
Forward Guidance
The company updated its outlook for 2021, expecting full year revenue in the range of $5.5 billion to $5.7 billion, gross profit margin between 26% and 29%, and operating profit between $500 million and $550 million. For the second quarter 2021, revenue is expected to be in the range of $1.40 billion to $1.45 billion, gross profit margin between 25.5% and 27.5%, and operating profit between $115 million and $125 million.
Positive Outlook
- Full year revenue to be in the range of $5.5 billion to $5.7 billion
- Full year gross profit margin in the range of 26% to 29%
- Full year operating profit in the range of $500 million to $550 million
- Second quarter revenue to be in the range of $1.40 billion to $1.45 billion
- Second quarter operating profit in the range of $115 million to $125 million
Challenges Ahead
- Monitoring developments around COVID-19
- Supply chain challenges
- Logistical challenges
- Potential impact of COVID-19 on demand
- Potential impact of COVID-19 on supply chains
Revenue & Expenses
Visualization of income flow from segment revenue to net income