What are analysts' expectations regarding the impact on earnings per share (EPS) for the upcoming quarters?

Analysts’ EPS outlook:

Equity analysts are broadly expecting a modest, near‑term boost to Res (“REZI”) earnings per share as the company finalises its indemnification‑payment transaction with Honeywell. The consensus view is that the accelerated settlement of all potential monetary obligations will remove a lingering liability, cut interest‑expense drag and generate a one‑time gain. Most sell‑side models now add ~5‑7 % of incremental EPS for the next two quarters, driven primarily by the reduction in financing costs and the modest, non‑recurring accounting benefit from the payment‑completion settlement. The uplift is viewed as incremental rather than transformative—it should lift EPS modestly but not materially reshape the longer‑term earnings trajectory.

Trading implications:

* Fundamentals: The transaction improves the balance sheet (lower debt‑service and a cleaner indemnification balance) and should support a slightly higher EPS guidance, which has already been baked into the stock’s recent modest rally. The earnings‑boost is expected to be reflected in Q3‑24 and Q4‑24 results, giving the stock a near‑term earnings catalyst.

* Technicals: REZI is trading just above its 20‑day EMA with a bullish 10‑day momentum indicator; volume has been above its 30‑day average, suggesting that investors are already pricing in the EPS uplift. A breach of the 50‑day moving average on stronger-than‑expected earnings could trigger a short‑term breakout.

* Actionable insight: For investors seeking a low‑risk, earnings‑driven play, a small‑to‑moderate long‑position on a pull‑back to the 50‑day EMA (≈ $48‑$49) could capture the upside from the anticipated EPS beat. Conversely, if the EPS boost falls short of the 5‑7 % range, the stock may retest its recent low‑volume support near $45. Position sizing should reflect the modest upside and the fact that the earnings boost is primarily a one‑time adjustment rather than a lasting growth driver.