ResMed (NYSE:RMD) Releases Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• ResMed reported quarterly EPS of $2.86, beating consensus by $0.04 and generating revenue of $1.43 billion, with a return on equity of 25.2% and a net margin of 27.53%.
• Shares traded up about 0.8% to $213.59 on higher-than-average volume; the company has a market cap of $31.12 billion, a P/E of 21.13 and a 52‑week range of $210.60–$293.81.
• Analysts hold a consensus "Moderate Buy" rating with an average price target of $294.55, while insiders have sold 21,023 shares in the past 90 days, including CEO Michael J. Farrell’s sale of 4,991 shares.

ResMed (NYSE:RMD - Get Free Report) released its earnings results on Thursday. The medical equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.82 by $0.04, FiscalAI reports. The business had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.42 billion. ResMed had a return on equity of 25.20% and a net margin of 27.53%.

ResMed Trading Up 0.8%

Shares of ResMed stock traded up $1.66 during trading hours on Thursday, reaching $213.59. The stock had a trading volume of 1,880,337 shares, compared to its average volume of 1,087,971. The firm has a 50 day simple moving average of $234.21 and a two-hundred day simple moving average of $246.92. The firm has a market capitalization of $31.12 billion, a price-to-earnings ratio of 21.13, a P/E/G ratio of 1.46 and a beta of 0.93. The company has a current ratio of 3.06, a quick ratio of 2.32 and a debt-to-equity ratio of 0.06. ResMed has a 1 year low of $210.60 and a 1 year high of $293.81.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on RMD shares. KeyCorp dropped their target price on ResMed from $302.00 to $290.00 and set an "overweight" rating on the stock in a report on Monday. Citigroup decreased their price target on ResMed from $345.00 to $340.00 and set a "buy" rating on the stock in a research note on Thursday, April 9th. Piper Sandler lifted their price target on ResMed from $270.00 to $275.00 and gave the company a "neutral" rating in a research note on Friday, January 30th. Evercore set a $255.00 price target on ResMed and gave the company an "outperform" rating in a research note on Monday, April 13th. Finally, JPMorgan Chase & Co. initiated coverage on ResMed in a research note on Wednesday, April 15th. They issued an "overweight" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $294.55.

Insider Transactions at ResMed

In other news, CEO Michael J. Farrell sold 4,991 shares of the stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $273.78, for a total value of $1,366,435.98. Following the completion of the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $127,642,532.94. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $225.00, for a total value of $450,000.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 21,023 shares of company stock worth $5,230,857. Company insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On ResMed

Hedge funds have recently bought and sold shares of the business. Inspire Investing LLC grew its stake in ResMed by 7.9% during the 4th quarter. Inspire Investing LLC now owns 902 shares of the medical equipment provider's stock valued at $217,000 after purchasing an additional 66 shares in the last quarter. Morningstar Investment Management LLC acquired a new stake in ResMed during the 3rd quarter valued at approximately $215,000. Lighthouse Investment Partners LLC acquired a new stake in ResMed during the 2nd quarter valued at approximately $206,000. Cresset Asset Management LLC acquired a new stake in ResMed during the 2nd quarter valued at approximately $206,000. Finally, Oxford Asset Management LLP acquired a new stake in ResMed during the 2nd quarter valued at approximately $204,000. Institutional investors and hedge funds own 54.98% of the company's stock.

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.

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