ResMed, a medical equipment company, was established in Australia in 1989 by Peter Farrell. It relocated to San Diego, California in 1990. Resmed primarily provides cloud-connectable medical devices for the treatment of sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. The company also provides software to out-of-hospital care agencies to streamline transitions of care into and between these care settings for seniors and their care providers. With 7,500 employees worldwide, Resmed operates in more than 140 countries with manufacturing facilities in Australia, Singapore, France, and the US.
“First quarter was better than expected, on strong demand, recovering patient flows and gains from Philips’ device recall, despite GM contracting on supply chain issues,” Raymond said.
“Device growth increased double-digits, even on an underlying basis (ex-COVID and recall), whereas US masks were soft (+5%) on limited new patient setups and a tough comp (+12%) in contract to ROW (+18% in cc).
“While we expect near-term margin pressure to remain and supply constraints to limit share gains from Philips’ device recall, underlying fundamentals are improving, which underpins a strong earnings outlook over the medium term.
“We have adjusted our financial year 2022 to 2024 forecasts, with our discounted cash flow or DCF/some of the parts or SOTP, based PT decreasing to A$40.80,” Raymond concluded.
ResMed (RMD)
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