The 10-second takeaway
For the quarter ended June 30 (Q4), ResMed met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins grew across the board.
ResMed logged revenue of $371.9 million. The 10 analysts polled by S&P Capital IQ predicted net sales of $370.3 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $341.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. GAAP EPS of $0.53 for Q4 were 43% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.9%, 210 basis points better than the prior-year quarter. Operating margin was 24.1%, 390 basis points better than the prior-year quarter. Net margin was 20.7%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $340.3 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $2.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 171 members out of 184 rating the stock outperform, and 13 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give ResMed a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ResMed is outperform, with an average price target of $34.25.
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