ResMed (RMD) Reports Next Week: Wall Street Expects Earnings Growth

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$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].