Core Insights - Resmed Inc. reported a strong performance for the fourth quarter of fiscal year 2025, with a 10% increase in revenue and significant growth in earnings per share, driven by robust demand for sleep and breathing health devices and an expanding digital health ecosystem [2][3][5] Financial Results and Operating Metrics - Revenue for the quarter reached $1.348 billion, a 10% increase compared to the previous year, with a 9% increase on a constant currency basis [4][6] - Gross margin improved to 60.8%, up 230 basis points year-over-year, while non-GAAP gross margin increased to 61.4% [4][6] - Non-GAAP diluted earnings per share rose by 23% to $2.55, with net income increasing by 30% to $380 million [6][14] - Operating cash flow for the quarter was $539 million, reflecting strong operational performance [5][14] Year-over-Year Performance - For the full fiscal year 2025, total revenue was $5.146 billion, marking a 10% increase from the previous year [6][25] - The company achieved a net income of $1.401 billion for the year, a 37% increase compared to the prior year [6][25] - Non-GAAP diluted earnings per share for the full year increased by 24% to $9.55 [6][25] Business Segments and Regional Performance - Revenue growth was driven by a 9% increase in the U.S., Canada, and Latin America, and a 9% increase in Europe, Asia, and other markets on a constant currency basis [9][25] - The Residential Care Software segment also saw a 9% increase in revenue, indicating strong organic growth [9][25] Strategic Initiatives - The company announced the acquisition of VirtuOx, enhancing its capabilities in at-home diagnostic services for sleep and respiratory conditions [14] - Resmed continues to invest in innovation and digital health capabilities to improve patient care and expand access to healthcare solutions [4][14] Dividend and Shareholder Returns - The board declared a quarterly cash dividend of $0.60 per share, representing a 13% increase from the previous quarter [11][14] - During the quarter, Resmed repurchased 419,000 shares for $100 million as part of its capital management strategy [14]

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Core Insights - ResMed is positioned to continue its earnings-beat streak, having surpassed earnings estimates in the last two quarters by an average of 3.04% [1][5] - The company reported earnings of $2.36 per share for the most recent quarter, slightly below the expected $2.37, but still achieved a surprise of 0.42% [2] - In the previous quarter, ResMed exceeded the consensus estimate of $2.30 per share by reporting $2.43, resulting in a surprise of 5.65% [2] Earnings Estimates and Predictions - Recent estimates for ResMed have been increasing, with a positive Earnings ESP of +5.16%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Companies often beat consensus EPS estimates, but this is not the only factor influencing stock price movements; thus, checking the Earnings ESP is crucial for investment decisions [10]

Core Viewpoint - ResMed (RMD) has shown strong stock performance, with a 4.5% increase over the past month and a 16.9% gain since the start of the year, outperforming the Zacks Medical sector and the Zacks Medical - Products industry [1][2]. Financial Performance - ResMed has consistently beaten earnings estimates, reporting an EPS of $2.37 against a consensus estimate of $2.36 in its last earnings report [2]. - For the current fiscal year, ResMed is projected to earn $10.47 per share on revenues of $5.12 billion, with a year-over-year earnings growth of 10.17%. For the next fiscal year, earnings are expected to rise to $11.35 per share on revenues of $5.51 billion, reflecting a growth of 7.53% [3]. Valuation Metrics - ResMed's stock trades at a valuation of 25.6 times the current fiscal year EPS estimates, which is higher than the peer industry average of 19.1 times. On a trailing cash flow basis, it trades at 29 times compared to the peer group's average of 10.2 times. The PEG ratio stands at 1.67, indicating it is not among the top value stocks [7]. - The company has a Value Score of C, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of B [6]. Zacks Rank - ResMed holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for ResMed shares in the near future [8]. Competitive Landscape - In comparison to industry peers, Phibro Animal Health Corporation (PAHC) also shows strong performance with a Zacks Rank of 1 (Strong Buy) and high scores across Value, Growth, and Momentum [9]. - PAHC is expected to post earnings of $2.30 per share on revenues of $1.28 billion for the current fiscal year, having beaten consensus estimates by 21.15% last quarter [10].

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]

Group 1 - Akebia Therapeutics (AKBA) is outperforming the Medical sector with a year-to-date return of approximately 104.2%, while the sector has returned an average of -5.7% [4] - The Zacks Consensus Estimate for AKBA's full-year earnings has increased by 65.4% in the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - Akebia Therapeutics holds a Zacks Rank of 1 (Strong Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3] Group 2 - Akebia Therapeutics is part of the Medical - Drugs industry, which consists of 155 companies and currently ranks 96 in the Zacks Industry Rank, with an average gain of 4.1% this year [6] - Another Medical stock, ResMed (RMD), has returned 10.2% year-to-date and has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 1.4% over the past three months [5] - The Medical - Products industry, which includes ResMed, has 84 stocks and is ranked 166, with an average return of 4.8% since the beginning of the year [6]

Company Overview - Resmed is set to release its financial and operational results for the fourth quarter of fiscal year 2025 on July 31, 2025, after the NYSE closes [1] - The company is dedicated to creating innovative health technologies that enhance the quality of life for individuals in 140 countries [2] - Resmed's vision includes empowering people to achieve better sleep and breathing through personalized home healthcare solutions [2] Earnings Webcast Details - Following the earnings release, Resmed management will host a webcast to discuss the results and other forward-looking information [1] - The earnings webcast will be accessible via a specific link, with no outside phone lines used for access [1] - A replay of the webcast will be available on Resmed's investor relations website approximately two hours after the live event [2] Contact Information - For investor inquiries, Resmed provides a dedicated contact number and email [3] - Media inquiries can also be directed to a specific contact number and email [3] - Additional details regarding the webcast timing and international access are provided [3][4]

Core Viewpoint - ResMed (RMD) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Group 1: Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, specifically tracking EPS estimates from sell-side analysts [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Group 2: ResMed's Earnings Outlook - ResMed is projected to earn $9.48 per share for the fiscal year ending June 2025, indicating no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for ResMed has increased by 0.2%, reflecting a positive outlook for the company's earnings [8]. Group 3: Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - ResMed's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].

Group 1 - The article mentions that Anand Chokkavelu, Emily Flippen, and Jason Moser have no positions in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends ResMed, indicating a positive outlook on the company [1]

Core Viewpoint - ResMed Inc. is considered a strong candidate for long-term investment, categorized in the "buy and hold forever" bucket [1] Company Summary - ResMed Inc. is listed on NYSE under the ticker RMD and also trades on the OTC market as RSMDF [1]