We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is ResMed (RMD) Down 1.7% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for ResMed (RMD - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ResMed due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ResMed Q2 Earnings Beat Estimates, Margins Expand
ResMed adjusted earnings per share for the second quarter of fiscal 2024 were $1.88, up 13.3% year over year. The metric beat the Zacks Consensus Estimate by 3.9%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, restructuring and masks with magnets field safety notification expenses, among others.
GAAP EPS in the reported quarter was $1.42, down 7.2% from the year-ago quarter.
Revenues
On a reported basis, fiscal second-quarter revenues increased 12% year over year (up 11% at constant exchange rate or CER) to $1.16 billion. The figure matched the Zacks Consensus Estimate.
A Closer View of the Q2 Top Line
Total Sleep and Respiratory Care revenues improved 11% (up 10% at CER) from the prior-year period to $1.02 billion.
Total Sleep and Respiratory Care revenues in Europe, Asia and other markets rose 16% on a reported basis (up 12% at CER) to $348.5 million.
In the United States, Canada and Latin America, total Sleep and Respiratory Care revenues were $669.3 million, up 9% year over year.
Global Revenues comprised Total Devices revenues of $606 million, up 12% (11% at CER), and Total Masks and other revenues of $411.9 million, up 10% (up 9% at CER), all on a year-over-year basis.
Software-as-a-Service (SaaS) revenues grew 24% year over year to $144.9 million.
Margins
The adjusted gross profit in the quarter under review rose 12.7% to $661.5 million despite a 12.2% uptick in the adjusted cost of sales (excluding the amortization of acquired intangibles, masks with magnets field safety notification expenses and Astral field safety notification expenses).
Adjusted gross margin for the fiscal second quarter was 56.9%, reflecting an expansion of 11 basis points (bps) on lower freight costs, increase in average selling prices and favorable foreign currency movements.
SG&A expenses rose 4.9% year over year to $222.2 million. R&D expenses increased 5.7% to $73.9 million.
The adjusted operating income was $365.5 million in the quarter under discussion, up 19.7% from the year-ago quarter. The adjusted operating margin expanded 188 bps year over year to 31.4%.
Financial Updates
ResMed exited the second quarter of fiscal 2024 with cash and cash equivalents of $210.2 million compared with $209.1 million at the end of the fiscal first quarter. Total debt (short and long-term) at the end of the fiscal second quarter was $1.26 billion compared with $1.36 billion at the end of the fiscal first quarter.
The cumulative net cash provided by operating activities at the end of the fiscal second quarter was $559.1 million compared with $173.3 million in the year-ago period.
The company paid out $70.7 million in dividends in the fiscal second quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, ResMed has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ResMed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is ResMed (RMD) Down 1.7% Since Last Earnings Report?
It has been about a month since the last earnings report for ResMed (RMD - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ResMed due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ResMed Q2 Earnings Beat Estimates, Margins Expand
ResMed adjusted earnings per share for the second quarter of fiscal 2024 were $1.88, up 13.3% year over year. The metric beat the Zacks Consensus Estimate by 3.9%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, restructuring and masks with magnets field safety notification expenses, among others.
GAAP EPS in the reported quarter was $1.42, down 7.2% from the year-ago quarter.
Revenues
On a reported basis, fiscal second-quarter revenues increased 12% year over year (up 11% at constant exchange rate or CER) to $1.16 billion. The figure matched the Zacks Consensus Estimate.
A Closer View of the Q2 Top Line
Total Sleep and Respiratory Care revenues improved 11% (up 10% at CER) from the prior-year period to $1.02 billion.
Total Sleep and Respiratory Care revenues in Europe, Asia and other markets rose 16% on a reported basis (up 12% at CER) to $348.5 million.
In the United States, Canada and Latin America, total Sleep and Respiratory Care revenues were $669.3 million, up 9% year over year.
Global Revenues comprised Total Devices revenues of $606 million, up 12% (11% at CER), and Total Masks and other revenues of $411.9 million, up 10% (up 9% at CER), all on a year-over-year basis.
Software-as-a-Service (SaaS) revenues grew 24% year over year to $144.9 million.
Margins
The adjusted gross profit in the quarter under review rose 12.7% to $661.5 million despite a 12.2% uptick in the adjusted cost of sales (excluding the amortization of acquired intangibles, masks with magnets field safety notification expenses and Astral field safety notification expenses).
Adjusted gross margin for the fiscal second quarter was 56.9%, reflecting an expansion of 11 basis points (bps) on lower freight costs, increase in average selling prices and favorable foreign currency movements.
SG&A expenses rose 4.9% year over year to $222.2 million. R&D expenses increased 5.7% to $73.9 million.
The adjusted operating income was $365.5 million in the quarter under discussion, up 19.7% from the year-ago quarter. The adjusted operating margin expanded 188 bps year over year to 31.4%.
Financial Updates
ResMed exited the second quarter of fiscal 2024 with cash and cash equivalents of $210.2 million compared with $209.1 million at the end of the fiscal first quarter. Total debt (short and long-term) at the end of the fiscal second quarter was $1.26 billion compared with $1.36 billion at the end of the fiscal first quarter.
The cumulative net cash provided by operating activities at the end of the fiscal second quarter was $559.1 million compared with $173.3 million in the year-ago period.
The company paid out $70.7 million in dividends in the fiscal second quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, ResMed has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ResMed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.