SAN DIEGO & AUSTIN, Texas--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that it is investigating Resideo Technologies, Inc. (NYSE: REZI) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. Resideo Technologies manufactures home automation products, including smart thermostats and security cameras. The Company was formed through a spin-off from parent Honeywell International, Inc.
If you suffered a loss as a result of Resideo's misconduct, click here.
Resideo Technologies, Inc. (REZI) Significantly Misses Earnings Estimates
Leading up to its spin-off, Resideo touted its "bright future" and strong competitive position. Additionally, Honeywell touted that following the spin-off Resideo would be the market leader in home heating, air conditioning controls, and security markets. In connection with the Spin-Off, over 65 million Resideo shares were sold for over $1.4 billion. Despite auspicious projections, in March 2019, Resideo significantly reduced its 2019 financial guidance and revealed a 20% decrease in profit in its Product & Solutions segment. The disappointing financials continued into August 2019 when Resideo revealed a 36% drop in its EBITDA, citing “margin pressures due to product mix headwinds” among other things. Finally, on October 22, 2019, Resideo surprised investors by announcing preliminary financial results for the third quarter that revealed earnings that significantly missed estimates as well as the replacement of its CFO. On this news, the price of Resideo stock fell $5.73 per share, a decline of over 37%. Only a few weeks later, on December 2, 2019, Resideo announced that its CEO would be resigning from his position. The stock has yet to recover.
Resideo Technologies, Inc. (REZI) Shareholders Have Legal Options
Want to be notified if a class action against Resideo settles? Want to receive free alerts about companies engaged in wrongdoing? Sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.