ResMed (RMD) Stock: Gaining Big On Strong Earnings

  • Earnings Per Share – In terms of earnings per share, RMD definitely did not disappoint. During the quarter, analysts expected that the company would generate earnings in the amount of $0.78 per share. However, the company actually reported earnings in the amount of $1 per share. This figure not only beat expectations, but proved to be a strong climb of 36.9% on a quarter-over-quarter basis.
  • Revenue – When it comes to revenue, RMD investors got even more good news. During the second quarter, it was expected that the company would generate revenue in the amount of $577 million. However, the company actually reported revenue in the amount of $601.3 million, once again blowing away expectations.

In a statement, Mick Farrell, CEO at RMD, had the following to offer:

We had a strong quarter with double-digit revenue and operating profit growth… Our masks have performed well around the world, device sales are solid, and our cloud-based software continues to grow rapidly. Our operating excellence initiatives are achieving leverage in the business with more runway ahead. 

We recently announced our first ResMed branded portable oxygen concentrator, called Mobi, which will launch in the current quarter. Mobi exemplifies patient-centered innovation and our commitment to pioneer products and create value with services and solutions that improve patients’ quality of life, reduce the impact of chronic disease and save healthcare costs globally.

What We’re Seeing From The Stock

As investors, one of the first things that we learn is that the news moves the market. In particular, strong earnings have the potential to drive some pretty serious gains. So, it’s no surprise that we’re seeing strong movement in the value of ResMed today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:05), RMD is trading at $103.08 per share after a gain of $15.46 per share (17.64%) thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on RMD. In particular, we’re interested in following the commercial launch of Mobi as well as following the growth in sales among the rest of the company’s robust product offerings. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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