What happened

Home automation equipment manufacturer Resideo Technologies (REZI 0.36%) missed analyst expectations for the third quarter and guided lower for the full year. Investors hit the panic button, sending shares down more than 30% on Wednesday morning. As of 12:41 p.m. ET, they were still down 30.8%.

So what

Resideo Technologies has had a difficult run as a public company in the years since it was spun out of Honeywell International in 2018. Coming into earnings season, Resideo shares were down more than 30% since that spinoff, trailing the S&P 500 by about 70 percentage points.

Third-quarter results did little to change that trend. Resideo earned $0.42 per share on revenue of $1.62 billion, falling short of analyst expectations for $0.56 per share in earnings on sales of $1.69 billion. Resideo manufactures a range of products for the home including thermostats and security cameras. In the most recent quarter, it was hit by ongoing issues in the construction and renovation markets.

"As the third quarter progressed, we saw softer-than-expected orders and sales across Products & Solutions, with customers looking to normalize inventory levels as macro uncertainty grows," CEO Jay Geldmacher said in a statement. "We continue to navigate the changing macro environment and we are taking actions to ensure we protect profitability while staying focused on our strategic priorities."

Now what

The headwinds Resideo faced in the most recent quarter are still impacting the business, and it's taking a cautious outlook through the remainder of the year. The company expects revenue of between $1.55 billion and $1.6 billion in the fourth quarter, below analyst expectations for $1.66 billion in sales. Resideo also lowered its full-year 2022 revenue guidance to $6.36 billion to $6.41 billion, down from $6.45 billion to $6.65 billion.

Resideo has a role to play in the smart-home revolution, and a lot of its core brands are well respected by consumers. But since its initial days as a public company, investors have found little reason to get excited about Resideo the stock. Given the current macroeconomic environment the company is selling into, that sentiment is unlikely to change anytime soon.