ResMed shares gain as Jarden calls Q1 update a 'great result'
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More news: ResMed pared early gains on the ASX as the medical device group's first-quarter result impressed analysts.
ResMed shares were up 5.8% to $37.69 by 2pm, having climbed more than 8% earlier in the session.
Jarden called it a "great result", highlighting ResMed's ongoing momentum, particularly in devices. ResMed's gross margin tracked guidance, a "good outcome" given freight pressures and mix likely to have been a slight headwind, Jarden's analysts said.
Jarden has an 'overweight' rating on ResMed and a 12-month target price of $33.83.
ResMed shares gain on Q1 revenue growth
More news: ResMed shares climbed in morning trade on the ASX after the medical equipment maker reported an 11% rise in first-quarter revenue.
ResMed was the second best performing ASX 200 stock by 11:10am AEDT, with shares up 8.5% to $38.64.
ResMed posts 11% Q1 revenue growth on surging demand
The news: Medical equipment maker ResMed reported first-quarter revenue and earnings growth, driven by increased demand in the company's sleep devices and masks.
The numbers: ResMed's first-quarter revenue increased 11% year on year from $1.1 billion to $1.2 billion. Diluted earnings per share grew 42% from $1.49 to $2.11.
The San Diego-based company's gross margin improved 420 basis points from 54.4% to 58.6%. Income from operations climbed 34% from $289 million to $387.3 million.
The context: ResMed said revenue growth during the quarter was driven by increased demand for the company's sleep devices and masks portfolio, as well as strong growth across its residential care software business.
Excluding residential care software, revenue in the US, Canada and Latin America grew by 11%, while Europe, Asia and other markets rose 10%. Residential care software revenue increased by 12%.
ResMed attributed its gross margin improvement to manufacturing efficiencies and component cost improvements, and an increase in average selling prices.
Earlier this month, ResMed unveiled its '2030 strategy', including an updated ambition to help more than 500 people achieve their full health potential in 2030.
What they said: "Our first-quarter fiscal year 2025 results reflect ongoing momentum and strong execution across all areas of our business," ResMed chair and CEO Mick Farrell said.
"... our recently launched 2030 strategy will further enable us to transform sleep health, breathing health, and healthcare technology at home."
The source: ASX announcement
