ResMed (NYSE:RMD) Releases Earnings Results, Beats Estimates By $0.06 EPS

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

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 NYSE RMD traded down $11.39 during trading on Friday, hitting $211.84. The company had a trading volume of 3,810,342 shares, compared to its average volume of 1,315,907. The stock has a 50 day simple moving average of $200.49 and a 200 day simple moving average of $222.23. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. ResMed has a 12 month low of $180.26 and a 12 month high of $293.81. The firm has a market capitalization of $30.73 billion, a P/E ratio of 18.97, a price-to-earnings-growth ratio of 1.29 and a beta of 0.76.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be given a $0.66 dividend. The ex-dividend date is Thursday, August 20th. This is a positive change from ResMed’s previous quarterly dividend of $0.60. This represents a $2.64 dividend on an annualized basis and a yield of 1.2%. ResMed’s dividend payout ratio (DPR) is currently 23.14%.

ResMed News Summary

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

Analysts Set New Price Targets

Several research analysts have issued reports on the company. Mizuho dropped their target price on ResMed from $235.00 to $220.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. Jefferies Financial Group lowered their price objective on shares of ResMed from $240.00 to $225.00 and set a “hold” rating on the stock in a research note on Friday, July 10th. KeyCorp dropped their price objective on shares of ResMed from $260.00 to $255.00 and set an “overweight” rating on the stock in a report on Friday. JPMorgan Chase & Co. initiated coverage on shares of ResMed in a report on Wednesday, April 15th. They issued an “overweight” rating on the stock. Finally, Morgan Stanley restated an “equal weight” rating and set a $230.00 target price (down from $286.00) on shares of ResMed in a research report on Wednesday, June 17th. Seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $240.17.

Insider Buying and Selling

In related news, CEO Michael J. Farrell sold 4,991 shares of the business’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the completion of the transaction, the chief executive officer directly owned 466,223 shares in the company, valued at approximately $101,893,036.65. The trade was a 1.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Peter C. Farrell sold 8,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the completion of the sale, the director directly owned 52,773 shares of the company’s stock, valued at $11,873,925. This represents a 13.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 17,982 shares of company stock valued at $3,858,837. 0.65% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Jones Financial Companies Lllp increased its stake in ResMed by 52.6% in the 1st quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider’s stock worth $645,000 after buying an additional 994 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in shares of ResMed in the second quarter valued at about $389,000. Brown Advisory Inc. lifted its position in shares of ResMed by 17.8% in the second quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider’s stock valued at $409,000 after acquiring an additional 240 shares in the last quarter. Cresset Asset Management LLC purchased a new position in shares of ResMed in the second quarter valued at about $206,000. Finally, Alliancebernstein L.P. boosted its stake in shares of ResMed by 24.2% in the second quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider’s stock worth $73,808,000 after acquiring an additional 55,790 shares during the period. Institutional investors own 54.98% of the company’s stock.

About ResMed

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.