The 10-second takeaway
For the quarter ended Dec. 31 (Q2), ResMed beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins expanded across the board.
ResMed notched revenue of $376.5 million. The 12 analysts polled by S&P Capital IQ expected revenue of $362.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $332.7 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 11 earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.53 for Q2 were 26% higher than the prior-year quarter's $0.42 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 61.8%, 210 basis points better than the prior-year quarter. Operating margin was 24.5%, 430 basis points better than the prior-year quarter. Net margin was 20.7%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $381.1 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $1.50 billion. The average EPS estimate is $2.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 189 members out of 203 rating the stock outperform, and 14 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 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 hold, with an average price target of $41.66.
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