CORRECTED-Resmed Q3 revenue rises on product demand

Overview

• U.S. sleep device maker's Q3 revenue rose 11%, slightly beating analyst expectations

• Adjusted EPS for Q3 rose 21% and beat analyst expectations

• Company returned $262 mln to shareholders via dividends and buybacks

Outlook

• Company did not provide specific financial guidance for future quarters or the full year in its press release

Result Drivers

• PRODUCT DEMAND - Co said revenue growth was driven by increased demand for sleep devices, masks and accessories

• GROSS MARGIN GAINS - Gross margin rose 290 bps, primarily due to component cost improvements and manufacturing and logistics efficiencies, with a small positive impact from product mix and foreign currency

• OPERATING EXPENSES - SG&A expenses increased mainly due to VirtuOx acquisition costs, higher employee costs, and investments in marketing and technology

Company press release: ID:nGNX1v7VJT

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Resmed Inc is $290.00, about 36.8% above its April 29 closing price of $211.93

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.