Resideo Q2 2021 Earnings Report
Key Takeaways
Resideo Technologies reported a strong second quarter in 2021, with a 44% increase in revenue compared to the previous year. The company saw significant improvements in operating profit and gross profit margin, driven by strong demand and productivity improvements.
Net revenue increased by 44% to $1.5 billion compared to Q2 2020.
Gross profit margin improved to 25.8%, a 290 basis point increase year-over-year.
Operating profit was $121 million, a significant increase from the $6 million operating loss in Q2 2020.
Net income was $58 million, or $0.39 per diluted common share, compared to a net loss of $76 million in Q2 2020.
Resideo
Resideo
Resideo Revenue by Segment
Forward Guidance
Resideo updated its outlook for 2021, expecting full year revenue in the range of $5.85 billion to $5.95 billion, gross profit margin between 26% and 28%, and operating profit ranging from $535 million to $565 million. For the third quarter of 2021, the company anticipates revenue between $1.50 billion and $1.55 billion, gross profit margin from 26.5% to 28.5%, and operating profit in the range of $140 million to $150 million.
Positive Outlook
- Full year revenue expected to be in the range of $5.85 billion to $5.95 billion.
- Gross profit margin for the full year is projected to be between 26% and 28%.
- Operating profit for the full year is expected to be in the range of $535 million to $565 million.
- Third quarter revenue is anticipated to be between $1.50 billion and $1.55 billion.
- Third quarter gross profit margin is projected to be between 26.5% and 28.5%.
Challenges Ahead
- Challenging global logistics and supply chain environments are expected to continue.
- The COVID-19 pandemic may continue to cause disruptions to the business and global economy.
- Potential risks associated with agreements with Honeywell.
- The company's transformation programs and initiatives may not continue to succeed.
- Pending securities class action litigation settlement may face challenges in becoming effective.
Revenue & Expenses
Visualization of income flow from segment revenue to net income