ResMed(US:RMD) ZACKSยท2024-10-25 13:16Core Insights - ResMed Inc. reported adjusted earnings per share (EPS) of $2.20 for Q1 fiscal 2025, reflecting a 34.1% year-over-year increase and surpassing the Zacks Consensus Estimate by 8.4% [1] - The company's total revenues for the first quarter reached $1.22 billion, marking an 11.1% increase year-over-year and exceeding the Zacks Consensus Estimate by 2.9% [2] Financial Performance - The GAAP EPS for the quarter was $2.11, up 41.6% from the previous year [1] - Adjusted gross profit rose 17.5% to $724.9 million, with an adjusted gross margin of 59.2%, an increase of 324 basis points [5] - Adjusted operating income increased by 27.7% to $406.4 million, with an adjusted operating margin expanding 431 basis points to 33.2% [6] Revenue Breakdown - Revenues from the Sleep and Breathing Health segment improved 11% year-over-year to $1.07 billion, exceeding projections [4] - Global device revenues were $625.8 million, up 11%, while Masks and other revenues reached $442 million, also up 11% [4] - Residential Care Software revenues grew 13% year-over-year to $156.8 million, falling short of expectations [4] Cash and Debt Position - ResMed ended the quarter with cash and cash equivalents of $426.4 million, up from $238.4 million at the end of Q4 fiscal 2024 [7] - Total debt decreased to $677.5 million from $706.2 million at the end of the previous quarter [7] - The company generated cumulative net cash from operating activities of $325.5 million, compared to $286.3 million in the prior year [7] Strategic Developments - ResMed announced the launch of its first fabric mask, the AirTouch N30i, and introduced new patient-centric products aimed at enhancing therapy for sleep apnea patients [9] - The company unveiled its 2030 strategy focused on growth, profitability, and shareholder returns through product innovation and operational excellence [9] Market Reaction - Following the earnings announcement, ResMed's shares increased by 6.1% in after-hours trading [1]