ResMed Inc. Second Quarter Earnings Sneak Peek

ResMed, Inc. (NYSE:RMD) will unveil its latest earnings on Thursday, January 26, 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 profit of 38 cents per share, a rise of 2.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 5.5% versus last year to $1.54.

Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at net income of 33 cents per share against a mean estimate of profit of 35 cents. The company topped expectations in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 11% in revenue from the year-earlier quarter to $339.6 million.

Analyst Ratings: seven out of 11 analysts surveyed (63.6%) have a buy rating on ResMed.. This is below the mean analyst rating of nine competitors, which average 65.9% buy ratings.

A Look Back: In the first quarter, profit fell 10.9% to $50.5 million (33 cents a share) from $56.7 million (36 cents a share) the year earlier, missing analyst expectations. Revenue rose 11.6% to $314.8 million from $282 million.

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 13.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 17.3% from the year earlier quarter.

The decrease in profit in the first quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 10% in the fourth quarter of the last fiscal year, 9.2% in the third quarter of the last fiscal year and 27.1% in the second quarter of the last fiscal year.

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 October 24, 2011 to January 20, 2012, the stock price had fallen $5.67 (-17.9%) from $31.70 to $26.03. 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 July 19, 2011 and August 2, 2011 when shares fell for 11-straight days, falling 9.3% (-$3.02) over that span.

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

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