ResMed (NYSE:RMD) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

ResMed (NYSE:RMD) issued its earnings results on Thursday. The medical equipment provider reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $0.06, FiscalAI reports. ResMed had a net margin of 26.94% and a return on equity of 25.86%. The company had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter last year, the company posted $2.55 earnings per share. The firm’s quarterly revenue was up 8.6% on a year-over-year basis.

Here are the key takeaways from ResMed’s conference call:

• Q4 revenue rose 9% year over year, or 8% in constant currency, while non-GAAP EPS increased 16% to $2.95; full-year revenue grew 10%, EPS 17%, and free cash flow reached $1.6 billion.
• ResMed expects FY2027 reported revenue of $5.75 billion-$5.85 billion and non-GAAP EPS of $12.00-$12.25, with underlying core EPS growth of 12%-14% after excluding MatrixCare and Noctrix effects.
• Management sees continued demand tailwinds from rising sleep-health awareness, wearable partnerships, GLP-1 use, new AirSense and AirCurve platforms, fabric masks, and AI-enabled patient support; patients using both PAP and GLP-1 therapies showed better starts and resupply rates.
• The company plans to return more than $1.85 billion to shareholders in FY2027, including $1.5 billion in share repurchases and a 10% dividend increase to $0.66 per share, while continuing to invest in manufacturing capacity and innovation.
• ResMed will suspend new Astral ventilator sales throughout FY2027 to address a global field safety action, creating an estimated $75 million revenue headwind and approximately $0.15 EPS impact; Q4 included a $42 million provision for the recall.

ResMed Stock Performance

Shares of RMD stock traded down $11.39 during trading hours on Friday, reaching $211.84. 3,810,342 shares of the company traded hands, compared to its average volume of 1,315,907. ResMed has a 12-month low of $180.26 and a 12-month high of $293.81. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.01 and a quick ratio of 2.33. The company has a market cap of $30.73 billion, a P/E ratio of 20.31, a P/E/G ratio of 1.29 and a beta of 0.76. The firm has a 50-day moving average price of $200.49 and a 200 day moving average price of $222.23.

ResMed Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 20th will be paid a $0.66 dividend. This represents a $2.64 annualized dividend and a dividend yield of 1.2%. This is an increase from ResMed’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Thursday, August 20th. ResMed’s dividend payout ratio is 23.14%.

Analysts Set New Price Targets

RMD has been the topic of several research analyst reports. Robert W. Baird set a $213.00 price target on ResMed in a report on Friday. Wells Fargo & Company cut their price objective on ResMed from $225.00 to $215.00 and set an “equal weight” rating for the company in a report on Friday. Piper Sandler reduced their price objective on ResMed from $233.00 to $225.00 and set a “neutral” rating for the company in a research report on Friday. The Goldman Sachs Group reissued a “buy” rating on shares of ResMed in a report on Wednesday, July 1st. Finally, Morgan Stanley reissued an “equal weight” rating and issued a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Seven research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $240.17.

Key ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported fiscal Q4 earnings of $2.95 per share, beating the approximately $2.89–$2.90 consensus and rising from $2.55 a year earlier. Revenue increased 8.6% year over year to $1.46 billion, in line with estimates. ResMed Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its quarterly dividend from $0.60 to $0.66 per share, a 10% increase. The dividend is payable September 24 to shareholders of record on August 20, supporting ResMed’s income-investment appeal. ResMed Posts Strong Q4 Earnings and Lifts Dividend
• Positive Sentiment: Royal Bank of Canada raised its price target to $244 from $234 while retaining a “sector perform” rating, indicating potential upside from recent trading levels. Benzinga analyst action
• Neutral Sentiment: Analyst sentiment remains mixed. Piper Sandler lowered its target to $225 and Wells Fargo cut its target to $215; both maintain neutral or equal-weight ratings. The overall analyst consensus remains “Hold,” despite a consensus target near $246. ResMed Analyst Ratings
• Negative Sentiment: The primary pressure on RMD is forward guidance: fiscal 2027 revenue expectations reportedly trail consensus, raising concerns that growth may moderate even after the quarterly earnings beat. RMD Stock Down Despite Q4 Earnings Beat
• Negative Sentiment: Director Peter Farrell sold 8,000 shares worth $1.8 million. The sale was made under a pre-arranged Rule 10b5-1 plan, reducing its negative signaling value, but it may add modest short-term selling pressure. SEC Insider Trading Filing

Insider Activity at ResMed

In other news, Director Peter C. Farrell sold 8,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares in the company, valued at $11,873,925. This trade represents a 13.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the transaction, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 17,982 shares of company stock worth $3,858,837 in the last ninety days. Insiders own 0.65% of the company’s stock.

Hedge Funds Weigh In On ResMed

Several large investors have recently made changes to their positions in the business. WFA of San Diego LLC bought a new stake in ResMed during the 2nd quarter valued at approximately $26,000. Imprint Wealth LLC bought a new position in ResMed in the 3rd quarter worth approximately $26,000. Sunbelt Securities Inc. bought a new position in ResMed in the 3rd quarter worth approximately $31,000. DV Equities LLC purchased a new stake in ResMed during the 4th quarter valued at approximately $49,000. Finally, Kelleher Financial Advisors purchased a new stake in ResMed during the 3rd quarter valued at approximately $66,000. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

ResMed Company Profile

ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.