Resideo Names New CFO, Stock Falls 40%
On the heels of naming former Constellation Brands exec Bob Ryder interim CFO, Resideo saw its stock tumble 40% due to a decline in its comfort business.
AUSTIN, Texas — Resideo Technologies (NYSE: REZI) has named Robert (Bob) Ryder interim chief financial officer, effective Nov. 7, 2019. Ryder will succeed Joseph Ragan, who is leaving the company on Nov. 6, 2019, to pursue other opportunities, according to an announcement.
Ryder previously served as CFO of Constellation Brands where he was said to be instrumental in growing the company’s market capitalization from $4 billion to $27 billion.
In 2014, Ryder was ranked among the top five S&P 500 CFOs by the Wall Street Journal. He also was named the No. 1 CFO in the beverage industry by Institutional Investor magazine in 2015.
“We are pleased to welcome Bob to our executive leadership team during this interim period,” says Mike Nefkens, president and CEO of Resideo. “He’s a proven operator with significant relevant experience, making him the ideal person to support us while we search for a permanent CFO. Bob’s strong financial and operational acumen make him well suited to deliver a seamless transition as we execute on our strategic priorities, including the comprehensive business review we announced today. We are excited about the important role he will play in helping to drive sustainable and profitable growth. We also want to thank Joe for his significant contributions to Resideo, particularly his work preparing the company for and overseeing its spin-off one year ago. We wish him the best in his future endeavors.”
Resideo also released its preliminary Q3 revenue results which resulted in its stock plunging by 40%. The company attributed a decline of revenue in its Products & Solutions segment to a decline in its comfort business, which was due to lower sales volumes in non-connected thermostats.
It also said that poor pre-spin cutover from the prior generation of non-connected thermostats to the T-Series line impacted the adoption of mid-level T-Series thermostats.
“While I am disappointed in our preliminary results for the third quarter, we remain confident in the fundamentals of our business,” explains Nefkens. “The issues impacting our second-half 2019 results underscore the urgency to simplify our operations, reduce our cost structure, increase agility throughout the organization and drive adoption of our products in the professional, do-it-for-me channel where Resideo is a market leader. We are aggressively addressing challenges through a comprehensive operational and financial review of the company, with a particular focus on the Products & Solutions segment. We are targeting areas to drive improved financial performance and are confident we are pursuing the necessary changes to deliver superior shareholder value.”
The company is updating its full-year 2019 adjusted EBITDA guidance to be in the range of $330 million to $350 million, compared to previously expected $410 million to $430 million. It is also updating its full-year 2019 guidance for revenue growth to 2% to 4%, as compared to previously expected 2% to 5%.
You can read Resideo’s press release, here.
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