Resideo Technologies (NYSE: REZI) shares plummeted by 40% on Wednesday morning after the Company released preliminary third-quarter results and a management changeup on Tuesday.
For the third quarter, Resideo expects revenue to be around USD 1.22 Billion, representing a 2% growth year-over-year. And as for the full-year, Resideo lowered its revenue growth to 2% to 4% from its previous expectations of 2% to 5%.
The Company noted that declines from its Product & Solutions and Comfort business is dragging its revenue lower. Additionally, Resideo also expects the headwinds to continue into the peak winter demand period, which is expected to reduce previously expected full-year 2019 Product & Solutions revenue by approximately USD 110 Million.
Resideo noted that approximately USD 66 Million of the shortfall is from its Comfort segment while USD 22 Million is from its Residential Thermal Solutions unit.
The Company mentioned that its security products and connected thermostats have experienced solid growth. However, with the transition, these products have yet to benefit from lifecycle value engineering, ultimately impacting its financial guidance.
Lastly, Resideo announced that Robert Ryder has now been named interim Chief Financial Officer, which will be effective on November 7.
Ryder will succeed Joseph Ragan, who is leaving the Company on November 6 to pursue other opportunities.
Additionally, Resideo Vice President and Controller AnnMarie Geddes has been named interim Chief Accounting Officer, effective immediately.