ResMed (RMD -0.10%), a maker of medical devices for treating sleep apnea and other respiratory conditions, announced its fiscal third-quarter results on April 25, outperforming analyst expectations.
The company reported earnings per share (EPS) of $2.04, ahead of the $1.98 estimate, on revenue of $1.197 billion, which topped a forecast of $1.195 billion. This performance underscored ResMed's robust operational health and solid demand across its product range.
| Metric | Q3 2024 Results | Estimates | Q3 2023 Results | Change (YOY) |
|---|---|---|---|---|
| Revenue (in billions) | $1.197 | $1.195 | $1.117 | 7.2% |
| EPS | $2.04 | $1.98 | $1.58 | 29.1% |
| Gross margin | 57.9% | N/A | 55.3% | 260 bps increase |
| Income from operations (in millions) | $374.6 | N/A | $300.7 | 24.6% |
| Net income (in millions) | $300.5 | N/A | $232.5 | 29.2% |
Understanding ResMed
ResMed makes medical equipment for diagnosing, treating, and managing sleep-disordered breathing, COPD, and other chronic diseases. Its product lineup includes devices like the newly introduced AirCurve 11 series and the AirFit F40 mask system. Key to ResMed's strategy is providing more personalized and accessible healthcare.
The company has also been expanding its global footprint, achieving significant revenue growth in the U.S., Canada, and Latin America. Plus, ResMed continues to invest in product development.
Quarterly highlights
The latest financials reveal a solid trajectory, with a 7.2% year-over-year growth in revenue and a 29.1% jump in in EPS. Notably, ResMed saw a 260 basis point increase in its gross margin thanks to reduced freight and manufacturing costs. This margin expansion was instrumental in improving overall profitability.
ResMed continues to innovate, with the latest quarter seeing the launch of the AirCurve 11 series and the AirFit F40 mask system in the U.S. These products, alongside an 8% growth in software-as-a-service (SaaS) revenue, underscore ResMed's dual focus on hardware and software.
Geographically, ResMed saw revenue rise 9% in key markets like the U.S., Canada, and Latin America. The company's efforts in digital health and SaaS also paid off, recording an 8% revenue uptick.
Looking ahead
ResMed remains optimistic and believes it has a robust pipeline of products. However, investors should monitor the company's ongoing global market expansion and watch for any shifts in forward guidance.
