“ResMed (RMD) reported stronger-than-expected second quarter results, with adjusted earnings per share (EPS) of US$2.43 (+29%), exceeding both consensus and expectations,” Raymond said.
“Revenue came in at US$1,282m (+10%), driven by double-digit growth in sleep and respiratory sales, particularly in the Americas.
“SaaS revenue grew 8%, slightly below expectations.
“Adjusted gross margin improved to 59.2%, primarily due to manufacturing efficiencies, and adjusted operational income rose 19%.
“The company declared a dividend of US$0.53 (+10.4%), slightly below consensus. “Management highlighted strong demand for sleep health and digital health products, operational excellence, and opportunities in consumer wearables and GLP-1 therapies.
“Despite a 3% drop in after-hours trading, the results reflect a solid performance with strong growth potential.
“The stock remains rated as ADD with a target price of A$41.33,” Raymond said.
ResMed (RMD)
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
