Will REZI's Q1 2025 EPS beat forecasts?
4/7/2025 02:16pm
**Resideo Technologies' Q1 2025 EPS is likely to beat forecasts.** Here's a detailed analysis to support this conclusion:
1. **Consensus and Historical Performance**: The consensus EPS estimate for Q1 2025 is $0.31. Resideo has a history of beating EPS estimates, with a 50% success rate over the last year. This suggests that the company has a good chance of exceeding expectations in Q1 2025.
2. **Financial Performance and Trends**: Resideo's financial performance has shown improvements in certain areas. For instance, the company's ADI segment saw a 22% year-over-year growth in e-commerce net revenue. Additionally, gross margin improved to 39.5% in Q1 2024, up from 37.7% in the previous year. These positive trends indicate a strong operational performance that could translate into better EPS in Q1 2025.
3. **Outlook and Strategic Initiatives**: The company has provided a positive outlook for Q1 2025, with net revenue expected to be between $1.72 billion and $1.77 billion. This represents a slight increase from the previous year's revenue, which was slightly higher than estimated. The company's strategic focus on e-commerce and integration efforts are likely to contribute to this growth, potentially leading to better EPS.
4. **Market Conditions**: While market challenges have impacted Resideo's performance in the past, the company's resilience and strategic adjustments suggest that it is well-positioned to navigate these challenges and deliver strong financial results in Q1 2025.
In conclusion, considering Resideo's historical performance, recent financial improvements, positive outlook, and strategic initiatives, it is reasonable to expect that the company's Q1 2025 EPS will likely beat forecasts.