Resideo Technologies, Inc. (REZI) stock is soaring in pre-market trading, up 16.08% following the release of its impressive fiscal Q1 2025 earnings report. The smart home technology provider significantly outperformed analyst expectations, driving investor enthusiasm and prompting a notable target price increase from Morgan Stanley.

The company reported adjusted earnings of $0.63 per diluted share for the quarter ended March 29, substantially surpassing the FactSet analyst consensus of $0.31. This marks a significant improvement from $0.47 per share in the same quarter last year. Revenue also exceeded expectations, coming in at $1.77 billion compared to the anticipated $1.74 billion and last year's $1.49 billion.

Adding to the positive sentiment, Resideo provided an optimistic outlook for Q2, projecting adjusted earnings between $0.51 and $0.61 per share on revenue of $1.81 billion to $1.86 billion. The company also reaffirmed its fiscal 2025 guidance, maintaining its adjusted earnings forecast of $2.23 to $2.47 per share on revenue of $7.29 billion to $7.49 billion. In response to these strong results and positive outlook, Morgan Stanley raised its target price for Resideo Technologies from $19.00 to $24.00, further fueling investor confidence and contributing to the stock's pre-market surge.