ResMed Gains 37.8% in a Year: What's Driving the Stock?

Core Viewpoint - ResMed Inc. has demonstrated strong momentum with a 37.8% increase in share price over the past year, outperforming the industry growth of 10.7% and the S&P 500's 26.2% increase, indicating solid investment potential for the company [1]. Company Overview - ResMed designs, manufactures, and distributes generators, masks, and related accessories for the treatment of sleep-disordered breathing and other respiratory disorders, operating under two segments: Sleep and Respiratory Care and Software-as-a-Service (SaaS) [2][3]. Growth Factors - The upward trend in ResMed's share price is driven by robust mask sales, strong respiratory care product performance, and a focus on international expansion, supported by a solid fiscal first-quarter performance [4]. - Investor optimism is bolstered by the launch of new patient-centric products, including the AirTouch N30i fabric mask, enhancing the therapy journey for sleep apnea patients [5]. - ResMed reported impressive fiscal first-quarter results, with significant year-over-year revenue growth across all product and geographic categories, aided by new patient activations and ongoing ReSupply programs [6]. Financial Performance - In the fiscal first quarter, ResMed achieved an adjusted gross profit of $724.9 million, a 17.5$406.4 million, reflecting a 27.7% increase from the previous year, with the adjusted operating margin expanding by 431 basis points to 33.2% [7]. Future Estimates - ResMed's earnings per share (EPS) for fiscal 2025 are projected to grow by 21.1% to $9.35, with revenues expected to rise by 8.9$5.10 billion year-over-year [10].