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 significantly lowers mortality rates, with a 37% reduction in patients with obstructive sleep apnea (OSA) who received treatment compared to those who did not [3] - Research indicated that PAP treatment reduces hospitalization rates in OSA patients over the first four years of treatment, correlating with decreased healthcare resource utilization [4] - The prevalence of OSA in the U.S. is projected to increase by 27.6% by 2050 among individuals aged 30-70, with an expected overall prevalence of 26% in this demographic [5][8] Group 2: GLP-1 Receptor Agonists and PAP Therapy - A study found that the use of GLP-1 receptor agonists did not increase discontinuation rates of PAP therapy; instead, patients adhering to GLP-1 medication showed higher levels of PAP therapy use [2][8] Group 3: Adaptive Servo-Ventilation (ASV) Therapy - ASV therapy was shown to reduce symptom burden and improve quality of life in patients with treatment-emergent or persistent central sleep apnea (TE-CSA) [6] - Another study indicated that ASV treatment in patients on long-term opioid therapy resulted in a median reduction in Epworth Sleepiness Scale values, reflecting lower symptom burden and improved quality of life [7] Group 4: COPD and Non-Invasive Ventilation (NIV) - Long-term home use of non-invasive ventilation (NIV) was associated with a significantly reduced risk of death in nearly 50,000 adults with chronic obstructive pulmonary disease (COPD) [9]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ResMed (RMD), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4]. Group 1: Brokerage Recommendations - ResMed has an average brokerage recommendation (ABR) of 1.68, indicating a consensus between Strong Buy and Buy, with 57.1% of recommendations being Strong Buy and 14.3% being Buy [2]. - The article highlights that brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - The interests of brokerage firms may not align with those of retail investors, leading to potential misguidance in stock price movements [6][9]. Group 2: Zacks Rank - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance compared to ABR [7][10]. - The Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with stock price movements, making it a timely tool for investors [10][11]. - ResMed currently holds a Zacks Rank 1 (Strong Buy) due to a 2.8% increase in the Zacks Consensus Estimate for the current year, reflecting analysts' growing optimism about the company's earnings prospects [12][13].

ResMed Inc. (RMD) is gaining from the global supply of its cloud-connected platforms, AirSense10 and AirSense11. The MEDIFOX DAN business contributes to the robust organic growth of the SaaS business, raising optimism. However, escalating debt levels and the competitive landscape are a concern. Robust Mask Sales: ResMed continues to see strong demand for its market-leading mask portfolio, gaining from a competitor's recall. The company continues to witness strong growth in the U.S. mask and accessories busi ...

SAN DIEGO, May 16, 2024 (GLOBE NEWSWIRE) -- Complete list of ResMed sponsored studies to be presented at ATS 2024: | | Sunday, May 19, | | --- | --- | | Treatment of sleep-disordered breathing with adaptive servo-ventilation (READ-ASV) in opioid users – a European registry | 2024 | | | 9:15 AM | | | -11:15 AM | | | Sunday | | | May 19, | | 8-year Trends in Obesity, Type 2 Diabetes, and Glucagon-like Peptide-1 (GLP-1) Use in Patients | | | With Obstructive Sleep Apnea | 2024 | | | 9:15 AM - | | | 11:15 AM | ...

Investors might want to bet on ResMed (RMD) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. The power of a cha ...

BLOOMINGTON, Minn., May 16, 2024 (GLOBE NEWSWIRE) -- MatrixCare, a leading global technology provider in post-acute care, has partnered with Health Gorilla, the nation's only dual-designated Qualified Health Information Network (QHIN) and Qualified Health Information Organization (QHIO). This strategic alliance enables MatrixCare to seamlessly access, exchange, and integrate comprehensive clinical data into its Electronic Health Record (EHR) platform. Medical providers need an easy and secure way to exchang ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with ResMed (RMD) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - ResMed has a historical EPS growth rate of 13.3%, with projected EPS growth of 18.6% for the current year, surpassing the industry average of 13.6% [5]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for ResMed stands at 9.8%, significantly higher than the industry average of -12.5% [6]. - Over the past 3-5 years, ResMed's annualized cash flow growth rate has been 12.8%, compared to the industry average of 6% [7]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for ResMed, with the Zacks Consensus Estimate for the current year increasing by 2.7% over the past month [9]. Group 4: Overall Positioning - ResMed has achieved a Growth Score of A and holds a Zacks Rank of 2, indicating strong potential for outperformance in the growth stock category [10].

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Operating Cash Flow ($M) Free Cash Flow ($M) $134.1 $113.9 $109.0 LTM 3Q22 LTM 3Q23 LTM 3Q24 $364.1 $421.5 LTM 3Q22 LTM 3Q23 LTM 3Q24 Total debt outstanding $1,007M Net Debt $769M (Financial data as of March 31, 2024) 16 © 2024 ResMed | Q3 2024 Earnings Presentation – Apr. 25, 2024 Capital deployed over last 3 years (through March 31, 2024) Reinvest for growth • Reinvest in product development for high-return organic growth • Pursue targets aligned with long-term strategic goals and financial objectives • R ...

Financial Data and Key Metrics Changes - Group revenue for Q3 2024 was $1.2 billion, reflecting a 7% increase year-over-year and a 7% increase in constant currency terms [61] - Net income for the quarter increased by 27%, with non-GAAP diluted earnings per share also rising by 27% [72] - Cash flow from operations was $402 million, indicating solid underlying earnings and an improvement in working capital [72] - Gross margin increased by 240 basis points to 58.5%, driven by reductions in freight expenses, manufacturing cost improvements, and favorable product mix [69][70] Business Line Data and Key Metrics Changes - Device sales globally grew by 5%, while masks and other sales increased by 10% [67] - The Software-as-a-Service (SaaS) business in Residential Care achieved 8% year-over-year growth, with expectations for double-digit growth in fiscal year 2025 [51][68] - The Masks and Accessories business experienced a 10% growth year-over-year, outperforming the market in a competitive category [18] Market Data and Key Metrics Changes - Device sales in the U.S., Canada, and Latin America increased by 7%, while masks and other sales rose by 12% [62] - In Europe, Asia, and other markets, device sales increased by 1% on a constant currency basis, but excluding COVID-related sales, device revenue increased by 8% [68] - The company noted that over 80% of sleep apnea patients in the U.S. are undiagnosed, indicating significant market potential [40] Company Strategy and Development Direction - The company aims to grow and differentiate its core sleep health and breathing health business, develop market-leading medtech and digital health solutions, and leverage software solutions for Residential Care [24] - The ResMed 2030 operating model focuses on being a product-led, customer-centric leader in health tech, enhancing patient access to care [26] - The company is investing in artificial intelligence-driven capabilities and customer-facing AI products to enhance patient engagement [45][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ongoing new patient demand for devices and the potential for growth driven by consumer tech and Big Pharma [11][30] - The company is monitoring potential headwinds from geopolitical issues, estimating a negative impact on Q4 gross margin due to increased freight costs [64] - Management highlighted the positive impact of GLP-1 medications on patient adherence to therapy, with a 10.5% higher propensity to start positive airway pressure therapy among patients prescribed these medications [36][119] Other Important Information - The company declared a quarterly dividend of $0.48 per share and plans to continue share buybacks of approximately $50 million per quarter [74] - ResMed has improved over 174 million lives through its medical devices and digital health solutions over the past year [58] Q&A Session Summary Question: Sustainability of gross margin recovery - Management acknowledged the sharp recovery in gross margin and indicated that while some moderation is expected in Q4 due to external factors, long-term improvements are anticipated [79][90] Question: Contribution of freight and manufacturing to gross margin improvement - Management confirmed that both freight cost reductions and manufacturing cost improvements were significant contributors to the gross margin increase [92][95] Question: Impact of global markets and backlog activity - Management reported no significant changes in competitive dynamics in global markets and emphasized maintaining or growing market share [101][103] Question: Trends in new patient starts and home sleep testing - Management noted strong growth in new patient starts and indicated a steady flow of patients into the system, with ongoing opportunities in resupply programs [108][111] Question: Insights on GLP-1 medications and upcoming trial data - Management discussed the positive implications of GLP-1 medications on patient adherence and expressed interest in upcoming trial data for further insights [114][120]