What happened

After management reported fiscal 2020 first-quarter results, shares of ResMed (RMD 0.56%), a medical device maker focused on sleep-disorder breathing, rose 12% as of 12:00 p.m. EDT on Friday.

So what

The headline numbers from the period were great:

  • Revenue jumped 16% to $681 million. This figure handily beat the consensus estimate on Wall Street of $661 million.
  • Net income grew 14% to $120 million, or $0.83 per share.
  • Non-GAAP net income per share rose 15% to $0.93. This was $0.06 above what market watchers had forecasted.

Traders sent the share price to a new all-time high in response to the upbeat quarterly results.

Man sleeping with CPAP machine on face.

Image source: Getty Images.

Now what

CEO Mick Farrell stated that the upbeat quarterly performance positions the company well to deliver on its long-term objectives:

Through organic growth and targeted acquisitions, we're driving forward every facet of our business, leading the innovation of devices and software that improve health outcomes, create efficiencies, and reduce overall healthcare system costs. We're well on our way to improving 250 million lives in out-of-hospital healthcare in 2025.

Overall, this report shows that ResMed is more than capable of growing its revenue and profits at a double-digit clip. With plenty of runway ahead of it, I continue to believe that ResMed is a great healthcare stock for growth-focused investors to get to know.