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 Insights - Analysts project ResMed's quarterly earnings to be $2.04 per share, reflecting a year-over-year increase of 27.5% [5] - Total revenue is expected to reach $1.21 billion, marking a 7.5% increase from the same quarter last year [5] Revenue Estimates - The estimated revenue for 'U.S., Canada, and Latin America - Devices' is $416.07 million, indicating a 7.5% increase from the prior-year quarter [2] - 'Combined Europe, Asia, and other markets - Masks' is projected to be $118.76 million, showing a 10.6% increase from the year-ago quarter [3] - The total revenue for 'U.S., Canada, and Latin America' is estimated at $719.40 million, reflecting an 8.9% year-over-year change [4] - 'Global revenue - Devices' is expected to be $646.02 million, suggesting a 7.2% increase year over year [6] - 'U.S., Canada, and Latin America - Masks' is forecasted to reach $303.33 million, indicating a 10.8% year-over-year change [7] - The consensus for 'Global revenue - Total Sleep and Respiratory Care' stands at $1.07 billion, representing an 8.6% increase from the year-ago quarter [9] - 'Combined Europe, Asia, and other markets - Devices' is projected to be $229.95 million, reflecting a 6.9% year-over-year change [10] - 'Global revenue - Software as a Service' is expected to reach $152.24 million, indicating a 9.8% increase from the prior-year quarter [13] - 'Combined Europe, Asia, and other markets - Total Sleep and Respiratory Care' is estimated at $348.71 million, showing an 8.1% increase from the year-ago quarter [14] - 'Global revenue - Masks' is projected to be $422.09 million, reflecting a 10.8% increase from the year-ago quarter [15] Analyst Revisions - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.2%, indicating a reassessment of projections by covering analysts [11] - Analysts emphasize that understanding key metrics beyond consensus earnings and revenue estimates can provide a more comprehensive view of business performance [12] Market Performance - ResMed shares have increased by 2.9% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [16]

Core Viewpoint - ResMed (RMD) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended June 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for ResMed's quarterly earnings is $2.02 per share, reflecting a year-over-year increase of +26.3% [3]. - Expected revenues for the quarter are projected to be $1.21 billion, which is a 7.5% increase from the same quarter last year [4]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.16% higher, indicating a collective reassessment by covering analysts [5]. - The Most Accurate Estimate for ResMed is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.35%, suggesting a bearish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [7][8]. - A positive Earnings ESP combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) has shown a nearly 70% success rate for predicting earnings beats [9]. Historical Performance - In the last reported quarter, ResMed was expected to post earnings of $1.92 per share but exceeded expectations with actual earnings of $2.13, resulting in a surprise of +10.94% [14]. - Over the past four quarters, ResMed has beaten consensus EPS estimates three times [15]. Conclusion - ResMed does not currently appear to be a strong candidate for an earnings beat based on the combination of a negative Earnings ESP and a Zacks Rank of 3, making predictions about its performance uncertain [12][13][18].

Core Insights - The article emphasizes the importance of utilizing Zacks Premium to enhance investment confidence and market engagement for all investors, regardless of age or experience [1][2] Zacks Style Scores - Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, using an alphabetic rating system from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Style Score evaluates a company's future growth potential by examining projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores to provide a comprehensive assessment of stocks, highlighting those with attractive value, strong growth forecasts, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide 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 [8][9] Stock Recommendation: ResMed, Inc. (RMD) - ResMed, Inc. is recognized as a key player in the market for sleep-disordered breathing and respiratory disorder treatments, holding a 3 (Hold) Zacks Rank and a VGM Score of B [12][15] - The company has a Growth Style Score of A, with a projected year-over-year earnings growth of 19.6% for the current fiscal year, making it a strong candidate for growth investors [13][14] - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate now at $7.70 per share, and an average earnings surprise of 2.8% [16]

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 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 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, 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]