ResMed, Inc. Fourth Quarter Earnings Sneak Peek

ResMed, Inc. (NASDAQ:RMD) will unveil its latest earnings on Thursday, August 4, 2011. ResMed Inc. is a developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. Medtronic Earnings: Increasing Costs Tighten Margins as Net Income Falls>>

ResMed, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 36 cents per share, a rise of 5.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 36 cents during the last month. For the year, analysts are projecting profit of $1.46 per share, a rise of 16.8% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 35 cents per share versus a mean estimate of profit of 36 cents per share. In second quarter, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $334.8 million in revenue this quarter, a rise of 14.8% from the year ago quarter. Analysts are forecasting total revenue of $1.24 billion for the year, a rise of 13.8% from last year’s revenue of $1.09 billion.

Analyst Ratings: eight out of 13 analysts surveyed (61.5%) have a buy rating on ResMed.. This is below the mean analyst rating of nine competitors, which average 64.4% buy ratings.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 13.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 15.7% 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% while it rose 27.1% in the second quarter and 34.7% in the first quarter.

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).

Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $1.42 (-4.5%) from $31.71 to $30.29. The stock price saw one of its best stretches over the last year between April 7, 2011 and April 21, 2011 when shares rose for 11-straight days, rising 7.9% (+$2.46) over that span. It saw one of its worst periods between October 6, 2010 and October 19, 2010 when shares fell for 10-straight days, falling 8.2% (-$2.73) over that span. Shares are down $4.35 (-12.6%) year to date.

(Source: Xignite Financials)

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