ResMed Earnings: Here’s Why Investors are Buying Shares

ResMed Inc. (NYSE:RMD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. ResMed delivered double-digit profit and revenue growth. Shares are up 5.56%.

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ResMed Inc. Earnings Cheat Sheet

Results: Net income increased 23.91% to $77.9 million (53 cents per diluted share) in the quarter versus a net gain of $62.87 million in the year-earlier quarter.

Revenue: Rose 13.15% to $376.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ResMed Inc. reported adjusted net income of 53 cents per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $363.76 million.

Quoting Management: “We had a solid quarter across the board. And we believe we are in the early stages of an exciting market dynamic for sleep-disordered breathing (SDB), which we have been pioneering for many years, by offering full solutions to therapy providers and critical information for the reimbursement community. In short, we don’t just provide high quality flow generators and a highly regarded range of comfortable, effective and preferred masks and accessories, we offer robust data solutions that drive compliance and adherence…

…This combination is a significant value proposition for home medical equipment providers, because these solutions drive efficiencies and create additional business opportunities.  And by providing valuable clinical and economic data to payors, we strive to help them more fully appreciate SDB therapy’s positive effect on health and cost benefit outcomes.  We believe that our continuing advocacy for screening, diagnosis, treatment, and monitoring patient adherence to SDB therapy presents a significant opportunity to improve health and quality of life, contain healthcare costs, and curtail the development of multiple co-morbidities, many of which are far more devastating and costly than SDB.”

Key Stats:

Revenue increased 10.82% from $339.73 million in the previous quarter. Net income increased 9.3% from $71.27 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.52 to a profit $0.55. For the current year, the average estimate has moved up from a profit of $2.05 to a profit of $2.16 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)