Core Insights - ResMed reported a strong second quarter for fiscal year 2025, with a 10% year-over-year revenue growth driven by increased demand for sleep health and breathing health products, as well as digital health solutions [2][4][5] - The company achieved a gross margin improvement of 230 basis points, reaching 59.2% on a non-GAAP basis, and a significant increase in operating income by 52% [3][5][8] - ResMed's operating cash flow for the quarter was $309 million, reflecting robust financial health and operational efficiency [4][5] Financial Performance - Revenue for the quarter ended December 31, 2024, was $1,282.1 million, compared to $1,162.8 million in the prior year, marking a 10% increase [3][5][24] - Gross margin improved to 58.6%, up from 55.6% year-over-year, while non-GAAP gross margin rose to 59.2% from 56.9% [3][5][24] - Net income for the quarter was $344.6 million, a 65% increase from $208.8 million in the same period last year, with diluted earnings per share rising to $2.34 from $1.42 [3][5][24] Operational Highlights - The company launched the Kontor Head Strap, a premium accessory for Apple Vision Pro, enhancing user experience and comfort [7][9] - ResMed's ecosystem in connected digital health is positioned to capitalize on emerging opportunities, particularly with the rise of consumer wearables and GLP-1 therapies [2][4] - The company continues to focus on operational excellence, which has contributed to margin expansion and strong cash flow generation [2][4] Regional Performance - Revenue in the U.S., Canada, and Latin America grew by 12%, while Europe, Asia, and other markets saw an 8% increase on a constant currency basis [8][24] - The Residential Care Software segment also experienced an 8% revenue increase, indicating solid organic growth [8][24] Dividend and Shareholder Returns - ResMed declared a quarterly cash dividend of $0.53 per share, payable on March 20, 2025, reflecting the company's commitment to returning value to shareholders [10]

Core Viewpoint - ResMed plans to release its financial and operational results for the second quarter of fiscal year 2025 on January 30, 2025, after the market closes, followed by a management webcast to discuss the results and other relevant information [1]. Group 1 - The earnings webcast will take place at 1:30 p.m. PST / 4:30 p.m. EST on January 30, 2025, with international times provided for London and Sydney [1]. - A replay of the earnings webcast will be available on ResMed's website approximately two hours after the live event, with a phone replay accessible from January 30, 2025, until February 13, 2025 [2]. - ResMed focuses on innovative solutions for chronic diseases, including sleep apnea and COPD, and operates in over 140 countries, aiming to improve quality of life and reduce healthcare costs [2].

Core Insights - ResMed will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 13, 2025, at 3:00 p.m. PST in San Francisco, CA, featuring CEO Mick Farrell and CMO Dr. Carlos Nunez [1] Company Overview - ResMed is focused on pioneering innovative solutions that treat chronic diseases, aiming to keep patients out of hospitals and improve their quality of life [3] - The company offers digital health technologies and cloud-connected medical devices for conditions such as sleep apnea and COPD, supporting care in over 140 countries [3] - ResMed's comprehensive out-of-hospital software platforms assist healthcare professionals and caregivers in managing patient health at home or in preferred care settings [3]

Core Viewpoint - ResMed Inc. has demonstrated strong momentum with a 37.8% increase in share price over the past year, outperforming the industry growth of 10.7% and the S&P 500's 26.2% increase, indicating solid investment potential for the company [1]. Company Overview - ResMed designs, manufactures, and distributes generators, masks, and related accessories for the treatment of sleep-disordered breathing and other respiratory disorders, operating under two segments: Sleep and Respiratory Care and Software-as-a-Service (SaaS) [2][3]. Growth Factors - The upward trend in ResMed's share price is driven by robust mask sales, strong respiratory care product performance, and a focus on international expansion, supported by a solid fiscal first-quarter performance [4]. - Investor optimism is bolstered by the launch of new patient-centric products, including the AirTouch N30i fabric mask, enhancing the therapy journey for sleep apnea patients [5]. - ResMed reported impressive fiscal first-quarter results, with significant year-over-year revenue growth across all product and geographic categories, aided by new patient activations and ongoing ReSupply programs [6]. Financial Performance - In the fiscal first quarter, ResMed achieved an adjusted gross profit of $724.9 million, a 17.5% year-over-year increase, with gross margin improving by 324 basis points to 59.2% [7]. - Adjusted operating income rose to $406.4 million, reflecting a 27.7% increase from the previous year, with the adjusted operating margin expanding by 431 basis points to 33.2% [7]. Future Estimates - ResMed's earnings per share (EPS) for fiscal 2025 are projected to grow by 21.1% to $9.35, with revenues expected to rise by 8.9% to $5.10 billion year-over-year [10].

Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [7][11]. Group 1: Zacks Style Scores Overview - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest rating [2]. - The Value Style Score focuses on identifying attractive and discounted stocks using various financial ratios like P/E and Price/Sales [3]. - The Growth Style Score evaluates a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [8]. - The Momentum Style Score helps investors capitalize on price trends by assessing factors like one-week price change and monthly earnings estimate changes [18]. Group 2: Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10][19]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment success [20]. - ResMed, Inc. (RMD) is highlighted as a stock to watch, holding a 2 (Buy) rating and a VGM Score of A, indicating strong potential [22]. Group 3: ResMed (RMD) Specifics - ResMed has a Value Style Score of B, supported by a forward P/E ratio of 24.93, making it attractive to value investors [14]. - Recent analyst activity shows two upward revisions in earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.13 to $9.35 per share [23]. - ResMed has an average earnings surprise of 6.4%, indicating a positive trend in earnings performance [23].

Core Insights - The FDA approved Eli Lilly's weight-loss drug Zepbound for treating moderate-to-severe obstructive sleep apnea in adults with obesity, raising concerns for companies like ResMed and Inspire Medical Systems that currently provide treatment devices [6][4] - ResMed's Chief Medical Officer indicated that weight-loss medications could be used alongside existing therapies, suggesting a potential shift in treatment approaches for sleep apnea [4][6] - Despite a recent decline in stock prices, ResMed shares have increased by approximately 33% this year, while Inspire Medical Systems shares have decreased by 9% in 2024 [6][4] Company Impact - ResMed's shares fell about 4% following the FDA's decision, but the company has seen significant growth in stock value this year [6][4] - Inspire Medical Systems experienced a 1.4% drop in shares, reflecting investor concerns about competition from new weight-loss drugs [6][4] - Analysts show mixed ratings for both companies, with ResMed receiving three "buy" and four "hold" ratings, while Inspire Medical Systems has seven "buy" and two "hold" ratings [6][4]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks ...

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Investors interested in Medical - Products stocks are likely familiar with ResMed (RMD) and Insulet (PODD) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revis ...

Dublin, Dec. 04, 2024 (GLOBE NEWSWIRE) -- The "Canada Sleep Apnea Devices Market, By Region, Competition, Forecast & Opportunities, 2019-2029F" report has been added to ResearchAndMarkets.com's offering.Canada Sleep Apnea Devices Market was valued at USD 338.54 Million in 2023 and is expected to reach USD 465.53 Million by 2029 with a CAGR of 5.41% The Canada Sleep Apnea Devices Market is being driven by several key factors. The increasing prevalence of sleep apnea, fueled by rising obesity rates and an ag ...