Strong Performance Yet... 1 Trillion Won Market Cap Vanishes Over Guidance

Resideo Technologies Inc. (NYSE: REZI) plunged about 18% intraday on the New York Stock Exchange, trading near $30.12 and erasing roughly $690 million in market value in a single day. Trading volume jumped to 3.46 million shares—several times the average—underscoring waning investor confidence. The company’s market capitalization now stands at approximately $4.56 billion (around ₩6 trillion).

In its Q1 2026 earnings released the prior day, Resideo beat expectations with revenue of $1.91 billion and adjusted diluted EPS of $0.65. However, its guidance for Q2—revenue of $1.916 billion to $1.94 billion and adjusted EPS of $0.71 to $0.75—fell short of Wall Street estimates. Investors have questioned the achievability of the full-year outlook as surging oil prices and freight rates due to the Hormuz Strait blockade weighed on margins, compounded by a slowdown in the high-end residential audio/video market.

Resideo, spun off from Honeywell in 2018, manufactures sensors and controls for residential and commercial applications, energy and water management systems, and security solutions. The company is planning to spin off its security and AV distribution unit, ADI Global Distribution, in the second half of 2026. After the split, the business will consist of two independent entities: the parent, focusing on building control and sensing solutions, and ADI, specializing in low-voltage product distribution.