Resideo Technologies has reported fourth-quarter net revenue of $1.3 billion, a 3% increase compared to the same period the prior year. For the full year, the company reported net revenue of $5 billion, up 3% year-over-year.
The company reported quarterly earnings of 39 cents per share, beating the Zacks Consensus Estimate of 28 cents per share. This compares to earnings of 31 cents per share a year ago. The figures are adjusted for non-recurring items. According to Zacks, the Q4 report represents an earnings surprise of 39.29%. In the prior quarter, Zacks forecasted earnings per share (EPS) of 23 cents when the company actually produced earnings of 19 cents.
The company said fourth-quarter results were driven by ongoing strong execution in its ADI Global Distribution business, where global revenue trends and disciplined cost management are driving adjusted EBITDA growth and profit margin expansion. ADI’s revenue increased by 10%, which the company attributed primarily to security and video surveillance product lines. Segment adjusted EBITDA increased year-over-year by 18% as SG&A costs grew at a lower rate than revenue.
Revenue from the Products & Solutions unit decreased by 4% year-over-year, driven by declines in the Comfort and Residential Thermal Solutions (RTS) businesses. Segment adjusted EBITDA for the fourth quarter decreased year-over-year by 28%, mainly due to negative product and channel mix, inventory write-offs, revenue declines and higher-than-expected production costs
