Shares of Resideo Technologies, Inc. (NYSE: REZI) surged 11.68% in after-hours trading on Tuesday, following the release of its impressive first-quarter 2025 financial results that significantly exceeded analyst expectations.
The smart home technology provider reported adjusted earnings of $0.63 per share, more than doubling the consensus estimate of $0.30 and marking a 34.04% increase from the same period last year. Revenue for the quarter came in at $1.77 billion, beating the analyst forecast of $1.74 billion and representing a robust 19.11% year-over-year growth. The company's gross margin improved to 28.9%, while income from operations reached $136 million.
Adding to the positive sentiment, Resideo provided an optimistic outlook for the second quarter, projecting non-GAAP EPS between $0.51 and $0.61, with expected net revenue ranging from $1.805 billion to $1.855 billion. The company also reaffirmed its full-year 2025 guidance, instilling confidence in its growth trajectory. This strong performance and upbeat forecast appear to be the key drivers behind the stock's significant after-hours rally, as investors respond favorably to Resideo's ability to outperform in a challenging market environment.
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