ResMed Inc. First Quarter Earnings Sneak Peek

ResMed Inc. (NYSE:RMD) will unveil its latest earnings on Thursday, October 25, 2012. ResMed is a developer, manufacturer and distributor of medical equipment for treating, diagnosing and managing sleep-disordered breathing and other respiratory disorders.

ResMed Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a rise of 39.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 44 cents. Between one and three months ago, the average estimate moved up. It has risen from 45 cents during the last month. Analysts are projecting profit to rise by 17.8% versus last year to $2.05.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 54 cents per share versus a mean estimate of net income of 48 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 31.4% to $76.8 million (53 cents a share) from $58.5 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.8% to $371.9 million from $341.9 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $9.43 (30.7%), from $30.68 to $40.11. The stock price saw one of its best stretches over the last year between August 8, 2012 and August 21, 2012, when shares rose for 10 straight days, increasing 5.7% (+$2.02) over that span. It saw one of its worst periods between May 21, 2012 and June 4, 2012 when shares fell for 10 straight days, dropping 5.6% (-$1.80) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 8.7% in revenue from the year-earlier quarter to $342.3 million.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 7.6% in the second quarter of the last fiscal year and 21.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.6% in the first quarter of the last fiscal year, 8.7% in the second quarter of the last fiscal year and 11.4% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: There are mostly holds on the stock with six of 11 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.38 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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