ResMed Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

ResMed Inc. (NYSE:RMD) reported its results for the fourth quarter. ResMed Inc. is a developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders.

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ResMed Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the medical appliances and equipment company rose to $58.5 million (37 cents per share) vs. $53.2 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 10% from the year earlier quarter.

Revenue: Rose 17.3% to $341.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: RMD beat the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $334.8 million.

Quoting Management: Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “In the fourth quarter of fiscal 2011 we continued to show strong year-over-year growth. Revenue in Americas increased by 14% to $182.8 million over the prior year’s quarter. Revenue outside Americas increased by 22% to $159.1 million over the prior year’s quarter, or an 8% increase on a constant currency basis. Operating profit for the June quarter was $66.7 million and cash flow from operations was a robust $74.3 million, demonstrating excellent operating performance.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.2%, with the biggest boost coming in the most recent quarter when revenue rose 17.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 9.2% and in the second quarter, the figure rose 27.1%.

Gross margin shrank 1.7 percentage points to 58.2%. The contraction appeared to be driven by increased costs, which rose 22.2% from the year earlier quarter while revenue rose 17.3%.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 35 cents versus a mean estimate of net income of 36 cents per share.

Competitors to Watch: Allied Healthcare Product (NASDAQ:AHPI), Masimo Corporation (NASDAQ:MASI), Electromed, Inc. (NASDAQ:ELMD), Medtronic, Inc. (NYSE:MDT), Dynatronics Corporation (NASDAQ:DYNT), Thermo Fisher Scientific Inc. (NYSE:TMO), Covidien plc (NYSE:COV), Dehaier Medical Systems Ltd (NASDAQ:DHRM), and CareFusion Corporation (NYSE:CFN).

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(Source: Xignite Financials)