Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service also includes Zacks Style Scores, which are designed to assist investors in selecting stocks with the highest potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each providing insights based on different investment strategies [3][4][5][6] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score evaluates a company's future earnings and financial health to identify stocks with sustainable growth potential [4] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [10] Group 4: Company Spotlight - ResMed, Inc. - ResMed, Inc. is a key player in the market for sleep-disordered breathing and respiratory disorder treatment products, holding a 3 (Hold) Zacks Rank and a VGM Score of B [11] - The company is particularly appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 22.8% for the current fiscal year [12] - Recent upward revisions in earnings estimates by five analysts for fiscal 2025 have led to an increase in the Zacks Consensus Estimate to $9.48 per share, alongside an average earnings surprise of 4.2% [12]

Company Overview - ResMed (RMD) shares have increased by approximately 4% over the past month, underperforming the S&P 500 index [1] - The stock currently holds a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the upcoming months [4] Earnings Estimates - Estimates for ResMed have trended upward over the past month, suggesting positive sentiment among analysts [2][4] - The stock has an aggregate VGM Score of C, with a Growth Score of B and a Momentum Score of D, indicating mixed performance across different investment strategies [3] Industry Comparison - ResMed is part of the Zacks Medical - Products industry, where another player, Neogen (NEOG), has seen a 19% increase in its stock price over the past month [5] - Neogen reported revenues of $220.98 million for the last quarter, reflecting a year-over-year decline of 3.4%, with an EPS of $0.10 compared to $0.12 a year ago [5] - Neogen's earnings estimates for the current quarter remain unchanged at $0.10 per share, but the Zacks Consensus Estimate has decreased by 23.8% over the last 30 days, resulting in a Zacks Rank of 4 (Sell) for Neogen [6]

Core Insights - ResMed Inc. (RMD) experienced growth in Q3 of fiscal 2025, primarily driven by strong performance in its Mask business and advancements in digital health technology, despite facing challenges from a tough macroeconomic environment and intense competition [1][8]. Financial Performance - ResMed has a market capitalization of $36.00 billion and an earnings yield of 3.9%, significantly higher than the industry's 0.5% [2]. - The company has consistently exceeded earnings estimates over the past four quarters, achieving an average surprise of 4.23% [2]. - The Zacks Consensus Estimate for fiscal 2025 earnings has increased by 0.3% to $9.48 per share, with revenue estimates at $5.12 billion, reflecting a 9.3% year-over-year increase [10]. Business Segments - **Mask Sales**: The demand for ResMed's mask portfolio remains strong, benefiting from a competitor's recall. The company has introduced a comprehensive range of masks, including AirFit and AirTouch, to enhance patient adherence through advanced software solutions like AirView [3][5]. - **Product Launches**: The AirFit F40 mask is performing well in the U.S. market, with plans for global expansion. The recent launch of the AirTouch N30i has received positive early feedback [4]. Growth Drivers - ResMed is advancing its digital health technology initiatives, focusing on cloud-based software products like AirView and myAir, which enhance the connected healthcare ecosystem [6]. - The company is investing in AI-driven capabilities to improve patient therapy adherence and outcomes, with positive early testing feedback for its AI products [7]. Challenges - **Macroeconomic Factors**: Global economic conditions, including issues stemming from the Middle East conflict, currency fluctuations, and inflationary pressures, pose risks to ResMed's growth and profitability. SG&A expenses rose by 6.7% year-over-year, while R&D expenses increased by 8.9% [8]. - **Competitive Landscape**: The market for sleep-disordered breathing products is highly competitive, with challenges arising from consolidation in the healthcare industry and competition from affiliates of ResMed's customers [9].

Core Insights - Resmed has been named the Official Sleep Partner of the Qatar Airways British & Irish Lions Tour to Australia, highlighting its commitment to promoting sleep health in sports [1][3][6] Company Overview - Resmed is a leading health technology company focused on sleep, breathing, and home care, aiming to empower individuals to live healthier lives through innovative technologies [1][13] - The company operates in 140 countries and emphasizes the importance of quality sleep as a critical component of overall health [13] Campaign Details - The 'Tackle Your Sleep' campaign will feature legendary rugby players and aims to raise awareness about sleep health issues affecting both players and fans [3][5] - The campaign will provide advice and tools to improve sleep quality, emphasizing its significance alongside exercise and diet [3][5] Health Implications - Poor sleep can negatively impact mental and physical health, relationships, and daily performance, particularly for athletes [4][5] - A study indicated that half of the rugby and cricket players surveyed were classified as poor sleepers, with many experiencing significant daytime fatigue [4][5] Tour Information - The British & Irish Lions Tour will take place over six weeks, featuring matches in six cities across Australia, with an estimated 40,000 fans participating [2][8] - The Lions will play a total of 10 matches, including three Test matches against the Wallabies [8]

Core Insights - Resmed has acquired VirtuOx, enhancing its capabilities in virtual care and expanding access to diagnostic services for sleep, respiratory, and cardiac conditions [1][2][5] Group 1: Acquisition Details - The acquisition reflects Resmed's commitment to improving care delivery by making it more accessible and patient-friendly [2][4] - VirtuOx's virtual testing platform offers fast, flexible, and affordable diagnostic options, particularly for underdiagnosed conditions like obstructive sleep apnea (OSA) [3][5] - VirtuOx will operate as a fully owned subsidiary of Resmed, maintaining its brand and leadership team post-acquisition [6] Group 2: Strategic Implications - The integration of VirtuOx's diagnostic capabilities is expected to streamline the diagnostic process and reduce patient drop-off rates [4][5] - The acquisition supports the growing demand for home-based care, driven by increased awareness and digital innovation [5] - Resmed aims to deepen relationships with healthcare providers, sleep labs, and home medical equipment providers through this acquisition [5][6]

Core Viewpoint - The article discusses the current state of the stock market, highlighting the positive performance of major indices due to strong earnings expectations from tech companies, while also emphasizing the importance of investing in low-leverage stocks to mitigate risks during market volatility [1][2]. Group 1: Market Overview - All three major stock indices of Wall Street ended positively on April 24, driven by better-than-expected earnings anticipation from tech giants like Alphabet and Intel [1]. - Investors remain cautious due to recent tariff announcements by U.S. President Trump, which have caused volatility in the global stock market [1][2]. Group 2: Investment Strategy - Investors are advised to focus on low-leverage stocks to minimize risks during market downturns [2][6]. - Low-leverage stocks are characterized by lower debt-to-equity ratios, which indicate improved solvency and reduced financial risk [7][9]. Group 3: Stock Selection Criteria - The article outlines specific criteria for selecting low-leverage stocks, including: - Debt/Equity less than the industry median [11]. - Current price of at least $10 [11]. - Average 20-day volume of at least 50,000 shares [11]. - Positive earnings growth compared to the industry median [11]. - VGM Score of A or B combined with a Zacks Rank of 1 or 2 [12]. - Estimated one-year EPS growth greater than 5% [12]. Group 4: Company Highlights - **Bilibili (BILI)**: Reported 104 million daily active users in 2024, with a projected 11% sales improvement for 2025 and a Zacks Rank of 2 [13][14]. - **Kingstone Companies (KINS)**: Announced a $70 million agreement to provide replacement policies in New York, with a projected 37.9% sales improvement for 2025 and a Zacks Rank of 1 [15]. - **Engie S.A. (ENGIY)**: Secured a 10-year extension for nuclear reactors, leading to a projected 19.6% earnings improvement for 2025 and a Zacks Rank of 1 [16]. - **ASML Holding (ASML)**: Achieved a 46.3% year-over-year increase in net sales and a 92.9% increase in earnings per share, with a projected 21.5% sales improvement for 2025 and a Zacks Rank of 2 [17][18]. - **Resmed (RMD)**: Reported an 8% revenue increase and a 13% surge in adjusted net income, with a projected 9% sales improvement for fiscal 2025 and a Zacks Rank of 2 [19].

Core Insights - ResMed Inc reported third-quarter adjusted EPS of $2.37, slightly above the consensus estimate of $2.36 [1] - Quarterly sales rose 8% year-over-year to $1.29 billion, matching estimates, with a 9% increase on a constant currency basis [1] - Gross margin improved by 140 basis points to 59.3%, driven by manufacturing efficiencies and favorable product mix [1] Financial Performance - Adjusted operating income increased by 13% to $444.6 million [2] - Adjusted net income rose by 11% to $348.5 million [2] - Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9% [3] - Revenue in Europe, Asia, and other markets, excluding Residential Care Software, increased by 8% on a constant currency basis [3] Product and Market Insights - Increased demand for sleep devices and growth in the Residential Care Software business contributed to sales growth [1] - Residential Care Software revenue grew by 10% on a constant currency basis, indicating continued organic growth [3] Regulatory and Analyst Commentary - Management confirmed that ResMed's products are exempt from tariffs under the Nairobi Protocol, which was approved in 2009 [2][4] - Analyst reactions include an 11% increase in ResMed stock price, with various price target adjustments from different firms [3][4]

Core Insights - ResMed Inc. reported adjusted earnings per share (EPS) of $2.37 for Q3 fiscal 2025, reflecting an 11.3% year-over-year increase and surpassing the Zacks Consensus Estimate by 0.4% [1] - The company's revenues for the same quarter reached $1.29 billion, marking a 7.5% year-over-year growth and exceeding the Zacks Consensus Estimate by 0.5% [3] Financial Performance - Adjusted gross profit increased by 10.5% to $773.8 million, with an adjusted gross margin of 59.9%, up 138 basis points year over year [9] - Selling, general and administrative expenses rose 6.7% to $245.3 million, while research and development expenses increased by 8.9% to $83.9 million [10] - Adjusted operating income was $444.6 million, up 13% from the previous year, with an adjusted operating margin of 34.4%, expanding by 154 basis points [10] Revenue Breakdown - The Sleep and Breathing Health segment generated revenues of $1.13 billion, an 8% increase year over year, with global device sales totaling $676.2 million, up 6% [6] - In the Residential Care Software segment, revenues grew 9% year over year to $161.2 million, slightly below projections [8] Market Reaction - Following the earnings announcement, ResMed's shares rose by 2.6% in after-market trading [2] Strategic Developments - The company launched the NightOwl, an FDA-cleared home sleep apnea test, and introduced a brand evolution to unify its brand portfolio [15]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Financial Data and Key Metrics Changes - Group revenue for Q3 FY2025 was $1.29 billion, representing an 8% increase year-over-year and a 9% increase in constant currency terms [44] - Gross margin increased by 140 basis points to 59.9%, driven by manufacturing and logistics efficiencies, as well as favorable shifts in product mix [48][49] - Net income for the March quarter increased by 11%, with non-GAAP diluted earnings per share also increasing by 11% to $2.37 [54] Business Line Data and Key Metrics Changes - Device sales globally increased by 7%, while masks and other sales increased by 12% on a constant currency basis [46] - In the US, Canada, and Latin America, device sales increased by 6%, and masks and other sales increased by 13% [47] - Residential care software revenue increased by 10% on a constant currency basis, supported by strong performance from the Medifox DAN software vertical [47] Market Data and Key Metrics Changes - Sales in Europe, Asia, and other regions increased by 8% on a constant currency basis [45] - The company is closely monitoring the evolving global trade environment, particularly in the area of tariffs, but does not expect significant impacts due to existing tariff exemptions [11][55] Company Strategy and Development Direction - The company is focused on expanding its digital health ecosystem and enhancing its brand awareness to capture a larger share of the sleep health market [27][29] - A new manufacturing facility in Calabasas, California, is set to open in June 2025, which will double the manufacturing footprint in the US and increase production capacity [57] - The company aims to improve the lives of 500 million people by 2030, emphasizing its commitment to innovation and patient care [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive amid global uncertainties, citing a strong balance sheet and operational efficiency [13][60] - The company is actively tracking metrics related to patient flow and treatment adherence, aiming to reduce wait times for diagnostics and therapy [81][82] - Management highlighted the importance of ongoing investments in R&D, which are expected to drive long-term growth [18][52] Other Important Information - The company plans to increase its share buyback program to approximately $100 million per quarter starting in Q4 FY2025 [60] - Cash flow from operations for the quarter was $579 million, including a tax refund of $107 million [58] Q&A Session Summary Question: Can you talk us through the factors that attributed to the gross margin expansion? - Management indicated that manufacturing and distribution efficiencies were the primary drivers, along with favorable product mix and component costs [67][68] Question: How are you tracking the investments related to sleep apnea diagnostics? - Management is tracking metrics such as time to titration and therapy onset, emphasizing the importance of reducing backlogs in sleep labs [81][82] Question: Can you provide an update on the GLP-1 medications and their impact on new patient funnels for CPAP? - Management noted that while GLP-1s are being rolled out, they are proactively educating primary care physicians to drive referrals for sleep apnea therapy [103][106] Question: What is the expected impact of US tariffs on your financial results? - Management confirmed that existing tariff exemptions apply to their products, and they do not expect significant financial impacts from new tariffs [55][132] Question: Can you elaborate on the increase in share buybacks and capital allocation? - Management expressed confidence in increasing share buybacks due to strong operating cash flows and a robust business model, while also considering M&A opportunities [92][96]