ResMed (NYSE:RMD – Get Free Report) released its earnings results on Thursday. The medical equipment provider reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.89 by $0.06, FiscalAI reports. ResMed had a net margin of 26.94% and a return on equity of 25.86%. The business had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter last year, the firm earned $2.55 earnings per share. The firm’s revenue for the quarter was up 8.6% compared to the same quarter last year.
Here are the key takeaways from ResMed’s conference call:
- Q4 revenue rose 9% year over year, or 8% in constant currency, while non-GAAP EPS increased 16% to $2.95; full-year revenue grew 10%, EPS 17%, and free cash flow reached $1.6 billion.
- ResMed expects FY2027 reported revenue of $5.75 billion-$5.85 billion and non-GAAP EPS of $12.00-$12.25, with underlying core EPS growth of 12%-14% after excluding MatrixCare and Noctrix effects.
- Management sees continued demand tailwinds from rising sleep-health awareness, wearable partnerships, GLP-1 use, new AirSense and AirCurve platforms, fabric masks, and AI-enabled patient support; patients using both PAP and GLP-1 therapies showed better starts and resupply rates.
- The company plans to return more than $1.85 billion to shareholders in FY2027, including $1.5 billion in share repurchases and a 10% dividend increase to $0.66 per share, while continuing to invest in manufacturing capacity and innovation.
- ResMed will suspend new Astral ventilator sales throughout FY2027 to address a global field safety action, creating an estimated $75 million revenue headwind and approximately $0.15 EPS impact; Q4 included a $42 million provision for the recall.
ResMed Stock Performance
Shares of RMD traded down $11.39 during midday trading on Friday, reaching $211.84. The stock had a trading volume of 3,810,342 shares, compared to its average volume of 1,315,907. The firm has a 50 day simple moving average of $200.49 and a 200-day simple moving average of $222.23. ResMed has a one year low of $180.26 and a one year high of $293.81. The firm has a market cap of $30.73 billion, a PE ratio of 20.31, a P/E/G ratio of 1.29 and a beta of 0.76. The company has a current ratio of 3.01, a quick ratio of 2.33 and a debt-to-equity ratio of 0.06.
ResMed Increases Dividend
Insider Activity
In related news, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the completion of the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of ResMed stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total value of $1,800,000.00. Following the transaction, the director owned 52,773 shares of the company’s stock, valued at $11,873,925. The trade was a 13.16% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 17,982 shares of company stock worth $3,858,837 over the last 90 days. 0.65% of the stock is owned by company insiders.
Institutional Trading of ResMed
Hedge funds have recently made changes to their positions in the business. WFA of San Diego LLC bought a new position in shares of ResMed during the 2nd quarter worth approximately $26,000. Imprint Wealth LLC acquired a new position in shares of ResMed during the 3rd quarter worth approximately $26,000. Sunbelt Securities Inc. bought a new stake in ResMed in the 3rd quarter valued at $31,000. DV Equities LLC bought a new stake in ResMed in the 4th quarter valued at $49,000. Finally, Kelleher Financial Advisors bought a new stake in ResMed in the 3rd quarter valued at $66,000. 54.98% of the stock is owned by institutional investors and hedge funds.
More ResMed News
Here are the key news stories impacting ResMed this week:
- Positive Sentiment: ResMed reported fiscal Q4 earnings of $2.95 per share, beating the approximately $2.89–$2.90 consensus and rising from $2.55 a year earlier. Revenue increased 8.6% year over year to $1.46 billion, in line with estimates. ResMed Q4 Earnings and Revenues Top Estimates
- Positive Sentiment: The company raised its quarterly dividend from $0.60 to $0.66 per share, a 10% increase. The dividend is payable September 24 to shareholders of record on August 20, supporting ResMed’s income-investment appeal. ResMed Posts Strong Q4 Earnings and Lifts Dividend
- Positive Sentiment: Royal Bank of Canada raised its price target to $244 from $234 while retaining a “sector perform” rating, indicating potential upside from recent trading levels. Benzinga analyst action
- Neutral Sentiment: Analyst sentiment remains mixed. Piper Sandler lowered its target to $225 and Wells Fargo cut its target to $215; both maintain neutral or equal-weight ratings. The overall analyst consensus remains “Hold,” despite a consensus target near $246. ResMed Analyst Ratings
- Negative Sentiment: The primary pressure on RMD is forward guidance: fiscal 2027 revenue expectations reportedly trail consensus, raising concerns that growth may moderate even after the quarterly earnings beat. RMD Stock Down Despite Q4 Earnings Beat
- Negative Sentiment: Director Peter Farrell sold 8,000 shares worth $1.8 million. The sale was made under a pre-arranged Rule 10b5-1 plan, reducing its negative signaling value, but it may add modest short-term selling pressure. SEC Insider Trading Filing
Analysts Set New Price Targets
A number of research firms have recently commented on RMD. Citigroup restated a “neutral” rating and set a $235.00 price objective (down from $270.00) on shares of ResMed in a research note on Sunday, July 12th. Wells Fargo & Company lowered their target price on ResMed from $225.00 to $215.00 and set an “equal weight” rating on the stock in a research report on Friday. Piper Sandler dropped their target price on ResMed from $233.00 to $225.00 and set a “neutral” rating on the stock in a report on Friday. Jefferies Financial Group reduced their price target on ResMed from $240.00 to $225.00 and set a “hold” rating for the company in a research report on Friday, July 10th. Finally, Mizuho reduced their price target on ResMed from $235.00 to $220.00 and set an “outperform” rating for the company in a research report on Wednesday, July 15th. Seven analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $240.17.
Read Our Latest Report on ResMed
ResMed Company Profile
ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.
ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.
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