Resmed shares surge on strong March quarter performance
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More news: Shares in Resmed jumped more than 8% to $35.99 in early trading on the ASX after the respiratory health giant posted double-digit earnings increase and strong revenue growth in its third quarter.
The dual-listed Resmed said the revenue growth was driven by increased demand for its sleep devices and masks, as well as solid growth across the Residential Care Software business. The company also conformed exemptions from US tariffs for its products.
Resmed lifts third-quarter revenue and margins
The news: Respiratory health company Resmed has posted strong revenue growth and double-digit earnings increase in the third quarter, helping lift margins across its global sleep and respiratory care businesses.
The numbers: Revenue for the three months to March rose 8% from a year ago to USD1.29 billion ($2.03 billion). Net income jumped 21% from a year ago to USD365.0 million, with the company’s gross margin expanding 140 basis points to 59.3%. It declared a quarterly cash dividend of 53 US cents a share.
The context: The ASX and NYSE-listed Resmed said the revenue growth was driven by increased demand for its sleep devices and masks, as well as solid growth across the Residential Care Software business. Gross margin increased mainly due to manufacturing and logistics efficiencies as well as favourable shifts in product mix, while selling, general, and administrative expenses also rose due to increases in employee-related and marketing expenses.
“These results are evidence that sleep health customers recognize our products and software solutions as the gold standard for care… We will continue to drive increased patient flow as we accelerate education and awareness outreach to physicians, providers, patients, and beyond, ensuring a strong pipeline of people who need access to our products and solutions to improve their lives,” CEO Mick Farrell said.
The source: ASX
