ResMed's (RMD) Q4 Earnings Surpass Estimates, Margins Expand

Financial Performance - ResMed Inc. reported adjusted earnings per share (EPS) of $2.08 for Q4 fiscal 2024, reflecting a 30% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.5% [1] - The full-year adjusted EPS was$ 7.72, exceeding the Zacks Consensus Estimate by 0.3% and increasing 19.9% from fiscal 2023 [2] - Revenues for Q4 were $1.22 billion, a 9% increase year-over-year (10% at constant exchange rates), and also beat the Zacks Consensus Estimate by 0.7% [3] - Full-year revenues reached$ 4.69 billion, marking a 10.9% improvement from fiscal 2023 [3] Revenue Breakdown - Total Sleep and Respiratory Care revenues for Q4 improved 9% year-over-year to $1.07 billion, exceeding projected revenues of$ 1.04 billion [4] - Software-as-a-Service (SaaS) revenues grew 10% year-over-year to $151.9 million, falling short of the projected$ 154.2 million [4] - Revenues in Europe, Asia, and other markets rose 7% to $343.9 million, surpassing the anticipated$ 324.7 million [5] - In the U.S., Canada, and Latin America, revenues were $727.4 million, up 10% year-over-year, but below the projected$ 777.6 million [5] - Global revenues included Total Devices revenues of $635.1 million (up 5%) and Total Masks and other revenues of$ 436.2 million (up 14%) [6] Profitability Metrics - Adjusted gross profit for Q4 increased 15.6% to $723.5 million, with an adjusted gross margin of 59.2%, reflecting an expansion of 338 basis points [7] - Adjusted operating income was$ 400.5 million, up 30.5% year-over-year, with an adjusted operating margin expanding 538 basis points to 32.7% [8] Financial Position - At the end of Q4 fiscal 2024, ResMed had cash and cash equivalents of $238.4 million, up from$ 227.9 million at the end of fiscal 2023 [9] - Total debt decreased to $706.3 million from$ 1.44 billion at the end of fiscal 2023 [9] - Cumulative net cash provided by operating activities was $1.40 billion, compared to$ 693.3 million in the previous year [9] Capital Management - The company paid out $71 million in dividends during Q4 and repurchased 232,000 shares for$ 50 million as part of its capital management strategy [10] Market Outlook - ResMed's strong performance is attributed to consistent demand for its products and software solutions, leading to growth across its device, mask, and software businesses [11] - The company is increasing the availability and production of its AirSense 11 and AirCurve 11 platforms globally, which is expected to enhance its market position [12]