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Sep 30, 2023
Resideo Q3 2023 Earnings Report
Resideo's Q3 2023 financial results were announced, demonstrating resilience in a challenging market environment.
Key Takeaways
Resideo Technologies reported Q3 2023 net revenue of $1.55 billion, a decrease from $1.62 billion in Q3 2022. GAAP EPS was $0.14, and non-GAAP EPS was $0.41. The company experienced more stable end market conditions within Products and Solutions, driving revenue and profitability above the midpoint of their outlook. Strategic initiatives, including the sale of Genesis Cable and the purchase of Sfty, were executed during the quarter.
Net revenue was $1.55 billion, compared to $1.62 billion in Q3 2022.
GAAP EPS was $0.14, and non-GAAP EPS was $0.41, compared to GAAP EPS of $0.42 and non-GAAP EPS of $0.48 in Q3 2022.
Cash provided by operating activities was $60 million, up from $37 million in Q3 2022.
The company repurchased 1.8 million shares for $30 million as part of a $150 million repurchase program.
Resideo
Resideo
Resideo Revenue by Segment
Revenue by Segment
Products and Solutions Revenue
CapyFin.comADI Global Distribution Revenue
CapyFin.com Forward Guidance
The company provided its outlook for Q4 2023 and updated its full year 2023 outlook, reflecting the sale of Genesis in mid-October.
Positive Outlook
- Net revenue is expected to be between $1.495 billion and $1.545 billion for Q4 2023.
- Gross profit margin is expected to be between 26.0% and 27.0% for Q4 2023.
- Income from operations is expected to be between $135 million and $155 million for Q4 2023.
- GAAP Earnings per share is expected to be between $0.43 and $0.53 for Q4 2023.
- Non-GAAP Earnings per share is expected to be between $0.29 and $0.39 for Q4 2023.
Challenges Ahead
- Net revenue outlook for 2023 was reduced by approximately $25 million due to the sale of Genesis.
- Operating income outlook for 2023 was reduced by approximately $4 million due to the sale of Genesis.
- Net revenue is expected to be between $6.200 billion and $6.250 billion for the full year 2023.
- Gross profit margin is expected to be between 26.6% and 27.2% for the full year 2023.
- Non-GAAP Adjusted EBITDA is expected to be between $542 million and $562 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income