Core Viewpoint - ResMed (RMD) shares have recently declined by 7.1% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - A hammer chart pattern indicates a potential bottom and exhaustion of selling pressure, suggesting that the stock may be poised for a trend reversal [2][4]. - The hammer pattern is characterized by a small candle body with a long lower wick, indicating that buying interest has emerged after a downtrend [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for ResMed, with a 1.1% increase in the consensus EPS estimate over the last 30 days, indicating that analysts expect better earnings than previously predicted [6][7]. - ResMed holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the potential for a trend reversal [8].

Group 1 - The article emphasizes the long-term advantage gained by consistently avoiding poor investment decisions rather than solely relying on intelligence [1] - The author expresses a focus on value investing, particularly in businesses that are currently out of favor, indicating a strategy of identifying overlooked opportunities [1] Group 2 - The publication clarifies that it is not a professional investment advisor and does not provide investment advice for buying or selling financial instruments [2] - It highlights the importance of conducting personal research and due diligence before making investment decisions [2]

Core Insights - ResMed reported strong fiscal Q2 2025 earnings, exceeding analyst expectations with adjusted EPS of $2.43 and revenue of $1.282 billion [1][3] - The growth was driven by high demand for sleep-related products and advancements in digital health solutions [2][7] Financial Performance - Adjusted EPS increased by 29.3% year-over-year from $1.88 to $2.43 [3] - Revenue rose by 10.2% year-over-year from $1.163 billion to $1.282 billion [3] - Adjusted gross margin improved by 230 basis points to 59.2% [3][9] - Adjusted net income reached $358.3 million, up 29.2% from $277.3 million [3] - Income from operations increased by 52% to $417.2 million [3] Business Segments - The Sleep and Breathing Health segment generated $1.13 billion in revenue, an 11% increase year-over-year [8] - The Residential Care Software segment saw an 8% revenue increase due to the adoption of digital solutions [8] Strategic Focus - ResMed emphasizes maintaining technological leadership and expanding digital health offerings, leveraging platforms like AirView for remote patient monitoring [5][6] - The company is focused on expanding its digital health technologies and geographic presence, particularly in high-growth regions like China and South Korea [6][13] Innovation and R&D - ResMed continues to invest in innovation, launching new products like the AirTouch N30i mask to enhance patient comfort [10] - Approximately 19% of the workforce is engaged in R&D, contributing to the company's innovative edge [10] Future Outlook - Management remains optimistic about future growth, aiming to expand SaaS and digital health applications [12] - The strategic vision includes leveraging trends such as AI and machine learning to enhance product offerings and operational insights [12][13]

Core Insights - ResMed reported revenue of $1.28 billion for the quarter ended December 2024, reflecting a year-over-year increase of 10.3% and exceeding the Zacks Consensus Estimate of $1.26 billion by 1.57% [1] - The company's EPS for the quarter was $2.43, up from $1.88 in the same quarter last year, surpassing the consensus estimate of $2.30 by 5.65% [1] Financial Performance - ResMed's shares have returned +10.6% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change, indicating strong market performance [3] - The company holds a Zacks Rank 2 (Buy), suggesting potential for continued outperformance in the near term [3] Revenue Breakdown - U.S., Canada, and Latin America - Devices generated $414.50 million, exceeding the average estimate of $396.91 million, with a year-over-year increase of +11.6% [4] - U.S., Canada, and Latin America - Masks and other products reported $334.50 million, above the average estimate of $329.71 million, marking a +12.3% year-over-year change [4] - Combined Europe, Asia, and other markets - Total revenue reached $376.60 million, slightly above the average estimate of $373.11 million, with a +8.1% year-over-year increase [4] - Global revenue for Total Devices was $669.30 million, surpassing the average estimate of $647.36 million, reflecting a +10.5% year-over-year change [4] - Global revenue for Total Sleep and Respiratory Care was $1.13 billion, exceeding the estimate of $1.10 billion, with a +10.6% year-over-year increase [4] - Global revenue for Total Masks and other products was $456.30 million, above the average estimate of $452.36 million, representing a +10.8% year-over-year change [4]

Revenue and Income - Net revenue for Sleep and Breathing Health products reached $1,125,593 thousand in Q2 2024, a 10.6% increase from $1,017,855 thousand in Q2 2023[11] - Total net revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up 10.7% from $2,265,122 thousand in the same period last year[11] - The company reported a net income of $344,622 thousand for Q2 2024, a 64.9% increase from $208,800 thousand in Q2 2023[11] - Net income for the six months ended December 31, 2024, was $655,977 thousand, compared to $428,222 thousand for the same period in 2023, representing a 53% increase[22] - Total revenue for the six months ended December 31, 2024, was $2,506,598 thousand, up from $2,265,122 thousand in 2023, reflecting an 11% growth[31] - Revenue from the Sleep and Breathing Health segment for the six months ended December 31, 2024, was $2,193,330 thousand, compared to $1,980,892 thousand in 2023, indicating a 11% increase[31] - Net revenue for the three months ended December 31, 2024, was $1.3 billion, an increase of 10% compared to the same period in 2023[130] - Net revenue from the Sleep and Breathing Health business for the three months ended December 31, 2024, was $1,125.6 million, an increase of 11% compared to the same period in 2023[134] Earnings and Profitability - Basic earnings per share for Q2 2024 were $2.35, up from $1.42 in Q2 2023, representing a 65.5% increase[11] - Diluted earnings per share for the six months ended December 31, 2024, was $4.45, compared to $2.90 for the same period in 2023, indicating a 53% increase[88] - For the three months ended December 31, 2024, net income was $344,622 thousand, compared to $208,800 thousand for the same period in 2023, representing a year-over-year increase of 65%[88] - Diluted earnings per share for the three months ended December 31, 2024, was $2.34, compared to $1.42 for the same period in 2023[130] - Gross profit for the three months ended December 31, 2024, was $751,275 thousand, compared to $646,934 thousand in Q2 2023, reflecting a 16.1% increase[11] - Gross margin for the three months ended December 31, 2024, was 58.6%, up from 55.6% in the same period in 2023[130] Expenses and Investments - Research and development expenses for the six months ended December 31, 2024, were $160,897 thousand, up from $149,590 thousand in the same period last year, reflecting a 7.5% increase[11] - Research and development investment during the three months ended December 31, 2024, was $81.4 million, representing 6.3% of net revenues[128] - Selling, general, and administrative expenses for the three months ended December 31, 2024, were $241.6 million, an increase of 9% from $222.2 million in the same period of 2023[155] - Selling, general, and administrative expenses for the six months ended December 31, 2024, totaled $480.6 million, an 8% increase from $445.0 million in the prior year[158] Assets and Liabilities - Total assets increased to $7,141,334 thousand as of December 31, 2024, compared to $6,872,394 thousand as of June 30, 2024, marking a 3.9% growth[8] - Total liabilities decreased to $1,888,325 thousand as of December 31, 2024, down from $2,008,351 thousand as of June 30, 2024, a reduction of 5.9%[8] - The company’s total stockholders' equity increased to $5,253,009 thousand as of December 31, 2024, compared to $4,864,043 thousand as of June 30, 2024, a growth of 8.0%[8] - Total inventories as of December 31, 2024, amounted to $882,103 thousand, an increase from $822,250 thousand as of June 30, 2024[55] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $521,944 thousand, up from $210,247 thousand at the end of December 2023[22] - The company reported a net cash provided by operating activities of $634,161 thousand for the six months ended December 31, 2024, compared to $559,115 thousand in 2023, a 13% increase[22] - Cash provided by operating activities for the six months ended December 31, 2024, was $634.2 million, an increase of $75.0 million compared to $559.1 million in 2023[194] - Cash used in investing activities decreased to $34.5 million for the six months ended December 31, 2024, from $190.1 million in 2023, a reduction of $155.6 million[196] - Cash used in financing activities was $298.3 million for the six months ended December 31, 2024, down from $390.1 million in 2023, indicating improved cash management[197] - As of December 31, 2024, the company had $1,500.0 million available under the revolving credit facility, contributing to a total liquidity of $2,021.9 million[187] Segment Performance - The company operates in two segments: Sleep and Breathing Health and Residential Care Software, with performance evaluated based on net revenues and income from operations[48] - Residential Care Software segment net revenue for the six months ended December 31, 2024, was $313,268 thousand, up 10.2% from $284,230 thousand in the prior year[53] - Net revenue in the U.S., Canada, and Latin America for the three months ended December 31, 2024, increased to $748.9 million, up 12% from $669.3 million in the same period of 2023[135] Debt and Financing - The total debt as of December 31, 2024, was $672.8 million, down from $707.2 million as of June 30, 2024[72] - The company has a senior unsecured revolving credit facility of $1,500.0 million, with an option to increase it by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA for the trailing twelve-month measurement period[73] - As of December 31, 2024, the company had $675.0 million outstanding under its Revolving Credit Agreement, Term Credit Agreement, and Senior Notes[83] Legal and Regulatory Matters - The company is involved in ongoing patent litigation, with a significant case against New York University regarding patent infringement, which is expected to be resolved by March 2025[90] - The company has filed for reexamination of U.S. Patent Nos. 11,375,921 and 11,786,680, with the Patent Office ordering reexamination on November 15, 2024, and December 3, 2024, respectively[96] Other Financial Metrics - The effective income tax rate for the three months ended December 31, 2024, was 17.6%, down from 19.5% for the same period in 2023[171] - Total other income for the three months ended December 31, 2024, was $1.1 million, a recovery from a loss of $15.6 million in the same period of 2023[168]

分组1 - ResMed reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.30 per share, and up from $1.88 per share a year ago, representing an earnings surprise of 5.65% [1] - The company achieved revenues of $1.28 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.57%, and an increase from $1.16 billion year-over-year [2] - ResMed has consistently surpassed consensus EPS estimates and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 10.6% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.37 for the coming quarter and $9.35 for the current fiscal year [7] - The Zacks Industry Rank indicates that the Medical - Products sector is in the bottom 48% of over 250 Zacks industries, which may impact stock performance [8] 分组3 - The estimate revisions trend for ResMed is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Revenue for the second quarter of fiscal year 2025 increased by 10% year-over-year to $1.3 billion, with a constant currency growth of 10%[4] - Gross margin improved by 300 basis points to 58.6%, while non-GAAP gross margin increased by 230 basis points to 59.2%[4] - Operating cash flow for the quarter was $309 million, with net income of $345 million, representing a 65% increase year-over-year[4] - Diluted earnings per share rose to $2.34, a 65% increase compared to the prior year, while non-GAAP diluted earnings per share increased by 29% to $2.43[4] - Net income for the first six months of fiscal year 2025 was $656 million, a 53% increase from the same period last year[5] - Net income for Q2 2024 was $344,622, representing a 65.0% increase compared to $208,800 in Q2 2023[16] - Basic earnings per share for Q2 2024 increased to $2.35, up from $1.42 in Q2 2023, reflecting a 65.5% growth[16] - GAAP net income for the three months ended December 31, 2024, was $344.6 million, up from $208.8 million in the same period of 2023, representing a 65% increase[25] - Non-GAAP diluted earnings per share for the six months ended December 31, 2024, was $4.63, compared to $3.51 for the same period in 2023, indicating a 32% increase[25] - Total revenue for the six months ended December 31, 2024, was $2,506.6 million, a 11% increase from $2,265.1 million in 2023[31] Revenue Growth - Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 12%[6] - Total revenue from devices in the U.S., Canada, and Latin America for the three months ended December 31, 2024, was $414.5 million, a 12% increase from $371.3 million in 2023[28] - Total revenue from masks and other products in the same region for the three months ended December 31, 2024, was $334.5 million, also a 12% increase from $298.0 million in 2023[28] - Total revenue from combined Europe, Asia, and other markets for the three months ended December 31, 2024, was $376.6 million, an 8% increase from $348.5 million in 2023[28] - Total Sleep and Breathing Health revenue for the three months ended December 31, 2024, was $1,125.6 million, an 11% increase from $1,017.9 million in 2023[28] Expenses and Investments - Selling, general, and administrative expenses increased by 9% year-over-year, but improved to 18.8% of revenue compared to 19.1% in the prior year[9] - Research and development expenses for Q2 2024 were $81,372, a 10.1% increase from $73,880 in Q2 2023[16] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[20] Cash and Assets - Cash and cash equivalents at the end of Q2 2024 were $521,944, significantly higher than $238,361 at the end of June 2024[19] - Total assets increased to $7,141,334 as of December 31, 2024, compared to $6,872,394 as of June 30, 2024[19] - Total liabilities decreased to $1,888,325 from $2,008,351, indicating improved financial health[19] Dividends and Shareholder Returns - The board declared a quarterly cash dividend of $0.53 per share, payable on March 20, 2025[10] Product Launches - The company announced the launch of the Kontor Head Strap, a premium accessory for Apple Vision Pro, enhancing user experience[9]

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]