Core Insights - ResMed Inc. reported a year-over-year revenue growth of 9% for the fourth quarter of fiscal year 2024, reaching $1.2 billion, with a constant currency growth of 10% [2][3] - The company achieved a significant increase in operating profit, up 38%, and a non-GAAP operating profit increase of 30% [2][3] - Operating cash flow for the quarter was $440 million, with debt repayments totaling $300 million [2][8] - The quarterly dividend was increased by 10% to $0.53 per share, reflecting the company's strong financial performance [2][10] Fourth Quarter 2024 Highlights - Revenue increased to $1.2 billion, a 9% rise compared to the previous year, and a 10% increase on a constant currency basis [2][3] - Gross margin improved by 350 basis points to 58.5%, while non-GAAP gross margin improved by 330 basis points to 59.1% [2][3] - Income from operations rose by 38%, with non-GAAP income from operations increasing by 30% [2][3] - Diluted earnings per share were reported at $1.98, with non-GAAP diluted earnings per share at $2.08, both reflecting a 30% increase [2][3] Full Year 2024 Highlights - Total revenue for the fiscal year reached $4.7 billion, marking an 11% increase year-over-year, consistent on a constant currency basis [3][6] - Gross margin for the year improved by 90 basis points to 56.7%, with non-GAAP gross margin up by 120 basis points to 57.7% [3][6] - Income from operations increased by 17%, while non-GAAP income from operations rose by 21% [3][6] - Diluted earnings per share for the year were $6.92, with non-GAAP diluted earnings per share at $7.72, both reflecting a 14% increase [3][6] Market Position and Strategy - ResMed is positioned as a market leader in sleep health and breathing disorders, with nearly 2.5 billion people affected by these conditions [4] - The company aims to increase market penetration and demand generation through innovative products and software solutions [4] - ResMed's focus on operating excellence and cost discipline has resulted in gross margin expansion and strong profitability growth [3][4] Operational Highlights - The company supported the presentation of 39 clinical research abstracts at major conferences, showcasing its leadership in clinical research and real-world evidence [9] - ResMed's ongoing capital management included paying $71 million in dividends and repurchasing 232,000 shares for $50 million [8]

Core Insights - ResMed is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 7.40% [1][2] Earnings Performance - For the most recent quarter, ResMed reported earnings of $2.13 per share, surpassing the expected $1.92 per share by 10.94%. In the previous quarter, it reported $1.88 per share against an expectation of $1.81 per share, resulting in a surprise of 3.87% [2] Earnings Estimates and Predictions - Recent estimates for ResMed have been increasing, with a positive Earnings ESP of +2.85%, indicating bullish sentiment among analysts regarding the company's earnings prospects. This is combined with a Zacks Rank of 3 (Hold), suggesting a potential for another earnings beat [3][6] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise, indicating a strong correlation between these metrics and earnings performance [4][5]

Core Viewpoint - The article discusses the relationship between earnings growth and stock price movements, highlighting that stocks can decline despite earnings growth if they fail to meet market expectations [1][10][23]. Earnings Growth and Stock Performance - Companies such as ResMed (RMD), Badger Meter (BMI), Leidos (LDOS), and Ingersoll Rand (IR) are currently showing strong earnings growth [2]. - Earnings estimates are crucial as they reflect analysts' views on sales growth, product demand, competitive environment, profit margins, and cost control, serving as a valuable tool for investment decisions [3]. Screening Criteria for Stock Selection - The screening measures include a Zacks Rank of 2 or lower, indicating 'Buys' or 'Strong Buys', and a year-over-year earnings growth of at least 5% [4]. - Stocks that have seen their annual earnings estimates revised higher in the last week are also considered [5]. Selected Stocks with Earnings Growth - The screening process narrowed down to six stocks, with the top four being: - ResMed, with an expected earnings growth rate of 19.6% for the current year [6]. - Badger Meter, expected earnings growth rate of 25.5% [17]. - Leidos, expected earnings growth rate of 19.9% [18]. - Ingersoll Rand, expected earnings growth rate of 11.8% [19]. Importance of Earnings Growth - Earnings growth is emphasized as the top priority for any organization, as profitability is essential for survival [10]. - Investors are encouraged to look for stocks with historical earnings growth and rising earnings estimates [12].

Core Insights - U.S. stocks exhibited mixed performance, with the Dow Jones index increasing by approximately 300 points on Monday [3] - ResMed Inc. experienced a significant decline in share price following sleep apnea data from Lilly, leading Citigroup analyst Mathieu Chevrier to downgrade the stock from Buy to Neutral [3][4] Company Performance - ResMed shares fell by 10.4%, closing at $184.35 [4] - Molecular Partners AG saw a 22.6% drop in shares, reaching $7.43 [6] - Cryoport, Inc. shares decreased by 19.9% to $7.77 after announcing a strategic partnership with Minaris Regenerative Medicine [6] - BridgeBio Pharma, Inc. shares declined by 19.2%, closing at $22.11 [6] - BitFuFu Inc. shares fell by 17.7% to $5.11, influenced by a drop in Bitcoin price [6] - Inspire Medical Systems, Inc. shares decreased by 15% to $136.88, with a price target reduction from $210 to $170 by Stifel analyst Jonathan Block [6] - Ginkgo Bioworks Holdings, Inc. shares fell by 13% to $0.3661 [6] - MicroStrategy Incorporated shares dipped by 10.3% to $1,328.74, also affected by Bitcoin's decline [6] - Paymentus Holdings, Inc. shares decreased by 9.3% to $16.97 [6] - Super Micro Computer, Inc. shares fell by 8.5% to $827.94 [6] - Sirius XM Holdings Inc. shares declined by 8% to $2.6950, despite an upgrade from Evercore ISI Group [6] - Coinbase Global, Inc. shares dipped by 7.7% to $208.51 following Bitcoin's price drop [6] - NVIDIA Corporation shares fell by 5.8% to $119.11, possibly due to a pullback after recent momentum [6]

Core Insights - ResMed shares experienced a significant decline following the release of Eli Lilly's clinical trial data indicating that its weight-loss drug Zepbound effectively reduces sleep apnea severity without the need for traditional masks [1][2] - The market reaction suggests potential challenges for ResMed's business model, which heavily relies on sales of sleep apnea devices [2][3] Company Overview - ResMed specializes in treating sleep apnea and generated approximately $1.2 billion in revenue from device sales in its most recent quarter [3] - The company has noted a positive correlation between the use of GLP-1 weight-loss drugs and the demand for sleep apnea treatments, indicating a sizable market risk if these drugs reduce the need for masks [4] Industry Impact - Eli Lilly's Zepbound has shown promise in reducing sleep apnea symptoms, with studies indicating a decrease in airflow restrictions during sleep [5] - The FDA has been approached to add sleep apnea to Zepbound's treatment label, with regulatory action anticipated by the end of 2024 [5]

Core Insights - ResMed presented 13 new clinical studies at SLEEP 2024, highlighting the effectiveness of positive airway pressure (PAP) therapy for obstructive sleep apnea (OSA) [1][6] Group 1: Prevalence of Insomnia - A study indicated that approximately 17% of adults in Northern America, Latin America, and the Caribbean suffer from insomnia, emphasizing the need for prioritizing sleep health in public health initiatives [2] Group 2: OSA and Depression - Research found that among OSA patients, nearly 17% had depression, with 25.5% of those being women. Patients with depression exhibited a higher burden of comorbidities and lower adherence to PAP therapy, particularly among women [4] Group 3: Impact of PAP Therapy - A study on patients with OSA and comorbid insomnia (COMISA) revealed that those who adhered to PAP therapy had significantly lower all-cause hospitalizations (0.09 vs 0.13) and emergency room visits (0.46 vs 0.60) compared to those with lower adherence, indicating improved health outcomes [7]

Core Insights - ResMed presented 13 new clinical studies at SLEEP 2024, highlighting the effectiveness of Positive Airway Pressure (PAP) therapy for treating Obstructive Sleep Apnea (OSA) and its impact on sleep health [4] Group 1: Clinical Research Findings - A study indicated that adherence to PAP therapy is linked to fewer hospital visits among patients with OSA and comorbid insomnia (COMISA), showing all-cause hospitalizations per person at 0.09 for adherent patients compared to 0.13 for non-adherent patients, and emergency room visits at 0.46 versus 0.60 respectively [2] - Research on the prevalence of insomnia across the Americas found that approximately 17% of adults experience insomnia, emphasizing the need for prioritizing sleep health in public health initiatives [5] - An analysis of over 345,000 adults with OSA revealed that 25.5% of those with depression were women, and those with depression showed lower adherence to PAP therapy, particularly among women [7] Group 2: Company Overview - ResMed is focused on pioneering innovative solutions that treat chronic diseases, including sleep apnea and COPD, through digital health technologies and cloud-connected medical devices, aiming to improve quality of life and reduce healthcare costs [8]

Core Insights - ResMed, Inc. is a leading designer, manufacturer, and distributor in the global market for generators, masks, and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders [12] - The company has received a 1 (Strong Buy) rating on the Zacks Rank, indicating strong potential for performance [23] - Recent earnings estimates for fiscal 2024 have been revised upwards by five analysts, with the Zacks Consensus Estimate increasing by $0.24 to $7.70 per share, reflecting a positive outlook [13] Zacks Rank and Style Scores - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with a focus on stocks rated 1 (Strong Buy) or 2 (Buy) [4][18] - ResMed has a Momentum Style Score of B, with shares increasing by 0.2% over the past four weeks, indicating positive momentum [20] - The VGM Score, which combines Value, Growth, and Momentum Style Scores, rates ResMed as B, further supporting its attractiveness as an investment [26] Investment Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize upside potential [18][19] - The Style Scores categorize stocks based on investing styles, helping investors identify securities with the highest chances of outperforming the market [8][22]

Core Insights - ResMed, Inc. (RMD) shares have increased by 16.3% since the last earnings report, significantly outperforming the industry average of 1.3% and the medical sector's rise of 3.6% [1] - The company reported better-than-expected earnings and revenues for the third quarter of fiscal 2024, driven by strong demand for its products and software solutions, resulting in double-digit growth in mask and accessories revenue [2] - ResMed's market capitalization stands at $31.33 billion, and it is recognized as a solid wealth creator for investors, holding a Zacks Rank of 2 (Buy) [1][2] Financial Performance - The company achieved a strong bottom line due to ongoing operational efficiencies, which improved margins and profitability [2] - ResMed paid out $70 million in dividends during the fiscal third quarter and repurchased 261,000 shares for $50 million, indicating robust capital management [8] - The company has a historical cash flow growth rate of 12.82%, outperforming the industry average of 5.98% [8] Growth Strategies - ResMed identified three key growth horizons: enhancing its core sleep apnea and respiratory care business, delivering advanced medical devices and scalable digital health solutions, and innovating advanced software solutions for digital care [4] - The company is ramping up demand-generation initiatives to increase awareness and access to care for sleep suffocation across global markets, leveraging both traditional healthcare channels and social media [5] - The myAir app has seen strong adoption, with 7.8 million users by the end of the fiscal third quarter, contributing to better patient outcomes and increased resupply [6] Market Outlook - Earnings for ResMed are expected to grow by 13.2% over the next five years, with recent estimates reflecting analysts' optimism [10] - The Zacks Consensus Estimate for RMD's earnings in 2024 and 2025 has increased by 2.8% and 4.9%, respectively, in the past 90 days [10]

Core Insights - ResMed supported 26 abstracts presented at the American Thoracic Society International Conference, highlighting the effectiveness of PAP therapy in treating sleep-disordered breathing and its cardiovascular health benefits [1][10] Group 1: PAP Therapy and Sleep Disorders - Studies demonstrated that PAP therapy continues to lower risks associated with sleep disorders, with a meta-study showing a 37% lower mortality rate in patients with PAP-treated obstructive sleep apnea (OSA) compared to untreated OSA [3] - An analysis of 17,000 treatment-naïve patients indicated that PAP treatment reduces hospitalization rates over the first four years of treatment, correlating PAP therapy use with reduced healthcare resource utilization [4] Group 2: Prevalence and Future Trends of OSA - Research projected a 27.6% increase in OSA cases in the U.S. by 2050 among individuals aged 30-70, with an overall prevalence of 26% expected in this demographic due to aging and rising BMI trends [5] - The increasing prevalence of OSA is anticipated to drive higher reliance on PAP therapy, which remains the gold standard for treatment [5] Group 3: GLP-1 Receptor Agonists and PAP Therapy - A study found that the use of GLP-1 receptor agonists did not lead to higher discontinuation rates of PAP therapy; instead, patients adhering to GLP-1 medication had higher levels of PAP therapy use compared to non-adherent patients [2][8] Group 4: Adaptive Servo-Ventilation (ASV) Therapy - Studies on ASV therapy showed reduced symptom burden and improved quality of life for patients with treatment-emergent or persistent central sleep apnea (TE-CSA) [6] - Another study indicated that ASV treatment for patients on long-term opioid therapy resulted in a median reduction in Epworth Sleepiness Scale values, demonstrating lower symptom burden and improved quality of life [7] Group 5: Non-Invasive Ventilation (NIV) in COPD - Research involving nearly 50,000 adults with COPD indicated that long-term home use of NIV is strongly associated with a reduced risk of death [9]