ResMed shares rise 3% as Q1 earnings surpass expectations

SAN DIEGO - ResMed Inc. (NYSE:RMD) reported better-than-expected first quarter fiscal 2025 results, driving its shares up 3.9% in after-hours trading. The sleep and respiratory care device maker posted strong revenue growth and margin expansion, beating analyst estimates on both the top and bottom lines.

ResMed reported adjusted earnings per share of $2.20 for the quarter ended September 30, 2024, surpassing the analyst consensus of $2.05. Revenue rose 11% year-over-year to $1.22 billion, exceeding expectations of $1.19 billion.

The company's focus on operational excellence led to significant margin improvements. Gross margin expanded 420 basis points to 58.6%, while adjusted gross margin increased 320 basis points to 59.2%. Income from operations jumped 34% compared to the same quarter last year.

"Our first-quarter fiscal year 2025 results reflect ongoing momentum and strong execution across all areas of our business," said Mick Farrell, Chairman and CEO of ResMed. "We delivered 11% YoY revenue growth, and our focus on operational excellence resulted in another quarter of YoY margin expansion and a 34% increase in operating profit."

ResMed's Sleep and Breathing Health segment, which includes sleep devices and masks, saw 11% revenue growth in the U.S., Canada, and Latin America. The Residential Care Software business also performed well, with revenue increasing 12% on a constant currency basis.

The company generated strong cash flow of $326 million during the quarter. ResMed also returned capital to shareholders through $78 million in dividends and $50 million in share repurchases.

Looking ahead, ResMed reaffirmed its commitment to its 2030 strategy, aiming to help over 500 million people achieve their full health potential by the end of the decade.

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Source: Investing.com