ResMed Announces Financials: 68th Consecutive Quarter of Revenue Growth

ResMed (RMD) announced earnings results Thursday. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.38 by $0.04. The company’s revenue for the quarter was up 8.8% on a year-over-year basis.

Results: Net income for ResMed Inc. rose to $62.9 million (42 cents per share) vs. $58.5 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 7.6% from the year earlier quarter.

Revenue: Rose 8.7% to $332.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RMD beat the mean analyst estimate of 38 cents per share. It fell short of the average revenue estimate of $339.6 million.

Quoting Management: Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “On a regional basis, revenue in the Americas increased by 12% to $182.5 million over the prior year’s quarter. Revenue outside the Americas was $150.2 million, an increase of 5% over the prior year’s quarter, on both a GAAP and constant currency basis. Our global operating profit for the December quarter was $67.3 million and cash flow from operations was a record $110.6 million, demonstrating excellent operating performance. During the quarter, we also repurchased 4.1 million shares, at a cost of $110.5 million, as part of our ongoing capital management program.”

Key Stats:
Gross margin shrank 1.1 percentage points to 59.7%. The contraction appeared to be driven by increased costs, which rose 11.7% from the year earlier quarter while revenue rose 8.7%.

Revenue has risen the past four quarters. Revenue increased 11.6% to $314.8 million in the first quarter. The figure rose 17.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 12.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 33 cents versus a mean estimate of net income of 35 cents per share.

The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 10.9% to $50.5 million.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from 40 cents per share to 39 cents. In the past month, the average estimate for the fiscal year has fallen from $1.55 per share to $1.54 abs.

Source: Investors ResMed

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