Resmed Q1 revenue beats estimates on sleep devices, mask demand
Overview
U.S. sleep and respiratory device maker's Q1 revenue rose 6%, slightly beating analyst expectations
Adjusted EPS for Q1 rose 14%, beating analyst expectations
Company returned over $1 bln to shareholders via buybacks and dividends in Q1
Outlook
Resmed expects FY 2027 revenue of $5.75 bln to $5.85 bln
Company maintains FY 2027 non-GAAP diluted EPS guidance of $12.00 to $12.25
Resmed reiterates FY 2027 core constant currency revenue growth guidance of 5% to 7%
Result Drivers
SLEEP DEVICES AND MASKS DEMAND - Co said strong global demand for sleep devices and masks drove Q1 revenue growth
PRODUCTIVITY GAINS - Co attributed gross margin improvement to productivity pipeline execution
DIVESTITURE IMPACT - Proceeds from MatrixCare sale and strong cash flow enabled investment in innovation and shareholder returns
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $1.42 bln | $1.39 bln (15 Analysts) |
Q1 Adjusted EPS | Beat | $2.91 | $2.67 (13 Analysts) |
Q1 EPS | $2.92 | ||
Q1 Adjusted Gross Margin | 62.50% |
*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 "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 2 "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 $240.00, about 4.1% below its October 28 closing price of $250.17
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
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Oct 29 - Medtech firm Baxter Q3 profit beats on Infusion Systems growth; raises 2026 outlook
Oct 28 - Glaukos Q3 revenue jumps 58% on iDose TR, Epioxa launches, Corneal Health growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)