ResMed (NYSE:RMD) Issues Earnings Results, Beats Expectations By $0.06 EPS

ResMed (NYSE:RMD) issued its quarterly earnings results on Thursday. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.89 by $0.06, FiscalAI reports. The firm had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.46 billion. ResMed had a return on equity of 25.86% and a net margin of 26.94%.The company’s quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.55 earnings per share.

Here are the key takeaways from ResMed’s conference call:

• Q4 revenue rose 9% year over year, or 8% in constant currency, while non-GAAP EPS increased 16% to $2.95; full-year revenue grew 10%, EPS 17%, and free cash flow reached $1.6 billion.
• ResMed expects FY2027 reported revenue of $5.75 billion-$5.85 billion and non-GAAP EPS of $12.00-$12.25, with underlying core EPS growth of 12%-14% after excluding MatrixCare and Noctrix effects.
• Management sees continued demand tailwinds from rising sleep-health awareness, wearable partnerships, GLP-1 use, new AirSense and AirCurve platforms, fabric masks, and AI-enabled patient support; patients using both PAP and GLP-1 therapies showed better starts and resupply rates.
• The company plans to return more than $1.85 billion to shareholders in FY2027, including $1.5 billion in share repurchases and a 10% dividend increase to $0.66 per share, while continuing to invest in manufacturing capacity and innovation.
• ResMed will suspend new Astral ventilator sales throughout FY2027 to address a global field safety action, creating an estimated $75 million revenue headwind and approximately $0.15 EPS impact; Q4 included a $42 million provision for the recall.

ResMed Price Performance

RMD traded down $11.39 during midday trading on Friday, reaching $211.84. 3,810,342 shares of the company’s stock were exchanged, compared to its average volume of 1,315,907. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. The business has a 50-day simple moving average of $200.49 and a two-hundred day simple moving average of $222.23. The firm has a market capitalization of $30.73 billion, a price-to-earnings ratio of 20.31, a price-to-earnings-growth ratio of 1.29 and a beta of 0.76. ResMed has a one year low of $180.26 and a one year high of $293.81.

ResMed Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.66 per share. This is a positive change from ResMed’s previous quarterly dividend of $0.60. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Thursday, August 20th. ResMed’s dividend payout ratio is 23.14%.

Wall Street Analysts Forecast Growth

RMD has been the subject of a number of research reports. UBS Group reiterated a “buy” rating and issued a $300.00 price objective on shares of ResMed in a research report on Tuesday, July 21st. KeyCorp lowered their price objective on ResMed from $260.00 to $255.00 and set an “overweight” rating on the stock in a research report on Friday. Royal Bank Of Canada upped their target price on ResMed from $234.00 to $244.00 and gave the company a “sector perform” rating in a research note on Friday. Jefferies Financial Group reduced their target price on ResMed from $240.00 to $225.00 and set a “hold” rating for the company in a research report on Friday, July 10th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of ResMed in a research note on Wednesday, July 1st. Seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $240.17.

Insider Activity at ResMed

In related news, CEO Michael J. Farrell sold 4,991 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the completion of the transaction, the chief executive officer owned 466,223 shares in the company, valued at $101,893,036.65. This trade represents a 1.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total value of $1,800,000.00. Following the completion of the sale, the director directly owned 52,773 shares in the company, valued at approximately $11,873,925. This represents a 13.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 17,982 shares of company stock worth $3,858,837. Corporate insiders own 0.65% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new stake in shares of ResMed in the 3rd quarter valued at $26,000. WFA of San Diego LLC bought a new stake in shares of ResMed in the 2nd quarter worth about $26,000. Sunbelt Securities Inc. acquired a new stake in shares of ResMed during the 3rd quarter worth about $31,000. DV Equities LLC acquired a new stake in shares of ResMed during the 4th quarter worth about $49,000. Finally, Kelleher Financial Advisors bought a new position in ResMed during the 3rd quarter valued at about $66,000. 54.98% of the stock is currently owned by institutional investors and hedge funds.

ResMed News Summary

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported fiscal Q4 earnings of $2.95 per share, beating the approximately $2.89–$2.90 consensus and rising from $2.55 a year earlier. Revenue increased 8.6% year over year to $1.46 billion, in line with estimates. ResMed Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its quarterly dividend from $0.60 to $0.66 per share, a 10% increase. The dividend is payable September 24 to shareholders of record on August 20, supporting ResMed’s income-investment appeal. ResMed Posts Strong Q4 Earnings and Lifts Dividend
• Positive Sentiment: Royal Bank of Canada raised its price target to $244 from $234 while retaining a “sector perform” rating, indicating potential upside from recent trading levels. Benzinga analyst action
• Neutral Sentiment: Analyst sentiment remains mixed. Piper Sandler lowered its target to $225 and Wells Fargo cut its target to $215; both maintain neutral or equal-weight ratings. The overall analyst consensus remains “Hold,” despite a consensus target near $246. ResMed Analyst Ratings
• Negative Sentiment: The primary pressure on RMD is forward guidance: fiscal 2027 revenue expectations reportedly trail consensus, raising concerns that growth may moderate even after the quarterly earnings beat. RMD Stock Down Despite Q4 Earnings Beat
• Negative Sentiment: Director Peter Farrell sold 8,000 shares worth $1.8 million. The sale was made under a pre-arranged Rule 10b5-1 plan, reducing its negative signaling value, but it may add modest short-term selling pressure. SEC Insider Trading Filing

ResMed Company Profile

ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.