Core Insights - Resmed Inc. reported a strong performance for the fourth quarter of fiscal year 2025, with a 10% increase in revenue and significant growth in earnings per share, driven by robust demand for sleep and breathing health devices and an expanding digital health ecosystem [2][3][5] Financial Results and Operating Metrics - Revenue for the quarter reached $1.348 billion, a 10% increase compared to the previous year, with a 9% increase on a constant currency basis [4][6] - Gross margin improved to 60.8%, up 230 basis points year-over-year, while non-GAAP gross margin increased to 61.4% [4][6] - Non-GAAP diluted earnings per share rose by 23% to $2.55, with net income increasing by 30% to $380 million [6][14] - Operating cash flow for the quarter was $539 million, reflecting strong operational performance [5][14] Year-over-Year Performance - For the full fiscal year 2025, total revenue was $5.146 billion, marking a 10% increase from the previous year [6][25] - The company achieved a net income of $1.401 billion for the year, a 37% increase compared to the prior year [6][25] - Non-GAAP diluted earnings per share for the full year increased by 24% to $9.55 [6][25] Business Segments and Regional Performance - Revenue growth was driven by a 9% increase in the U.S., Canada, and Latin America, and a 9% increase in Europe, Asia, and other markets on a constant currency basis [9][25] - The Residential Care Software segment also saw a 9% increase in revenue, indicating strong organic growth [9][25] Strategic Initiatives - The company announced the acquisition of VirtuOx, enhancing its capabilities in at-home diagnostic services for sleep and respiratory conditions [14] - Resmed continues to invest in innovation and digital health capabilities to improve patient care and expand access to healthcare solutions [4][14] Dividend and Shareholder Returns - The board declared a quarterly cash dividend of $0.60 per share, representing a 13% increase from the previous quarter [11][14] - During the quarter, Resmed repurchased 419,000 shares for $100 million as part of its capital management strategy [14]

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Core Insights - ResMed is positioned to continue its earnings-beat streak, having surpassed earnings estimates in the last two quarters by an average of 3.04% [1][5] - The company reported earnings of $2.36 per share for the most recent quarter, slightly below the expected $2.37, but still achieved a surprise of 0.42% [2] - In the previous quarter, ResMed exceeded the consensus estimate of $2.30 per share by reporting $2.43, resulting in a surprise of 5.65% [2] Earnings Estimates and Predictions - Recent estimates for ResMed have been increasing, with a positive Earnings ESP of +5.16%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Companies often beat consensus EPS estimates, but this is not the only factor influencing stock price movements; thus, checking the Earnings ESP is crucial for investment decisions [10]

Core Viewpoint - ResMed (RMD) has shown strong stock performance, with a 4.5% increase over the past month and a 16.9% gain since the start of the year, outperforming the Zacks Medical sector and the Zacks Medical - Products industry [1][2]. Financial Performance - ResMed has consistently beaten earnings estimates, reporting an EPS of $2.37 against a consensus estimate of $2.36 in its last earnings report [2]. - For the current fiscal year, ResMed is projected to earn $10.47 per share on revenues of $5.12 billion, with a year-over-year earnings growth of 10.17%. For the next fiscal year, earnings are expected to rise to $11.35 per share on revenues of $5.51 billion, reflecting a growth of 7.53% [3]. Valuation Metrics - ResMed's stock trades at a valuation of 25.6 times the current fiscal year EPS estimates, which is higher than the peer industry average of 19.1 times. On a trailing cash flow basis, it trades at 29 times compared to the peer group's average of 10.2 times. The PEG ratio stands at 1.67, indicating it is not among the top value stocks [7]. - The company has a Value Score of C, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of B [6]. Zacks Rank - ResMed holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for ResMed shares in the near future [8]. Competitive Landscape - In comparison to industry peers, Phibro Animal Health Corporation (PAHC) also shows strong performance with a Zacks Rank of 1 (Strong Buy) and high scores across Value, Growth, and Momentum [9]. - PAHC is expected to post earnings of $2.30 per share on revenues of $1.28 billion for the current fiscal year, having beaten consensus estimates by 21.15% last quarter [10].

Financial Data and Key Metrics Changes - The profit for the year decreased to CHF 7.9 million from CHF 10.7 million, attributed to a decline in dividend income and option income [7] - The management expense ratio improved slightly to 0.54% from 0.56%, indicating good value for an investment vehicle in this sector [8] - The ordinary dividend was maintained at €0.65, with a portfolio return of 11.4%, underperforming the benchmark return of 15.2% [9][11] Business Line Data and Key Metrics Changes - The portfolio's performance was driven by significant contributors such as Temple and Webster, which increased by 127%, and other companies like Hub24 and Life360 [25] - The underperformance was partly due to the absence of strong representation in high-performing sectors like gold [14] - The company sold down positions in high-performing stocks to manage volatility and maintain dividend capacity [27] Market Data and Key Metrics Changes - The company noted a strong recovery in the market after a significant drop earlier in the year, with a return to near peak levels by June [61] - Approximately 35% of revenue from the top 20 stocks comes from offshore sources, indicating a balanced exposure to global markets [72] Company Strategy and Development Direction - The company aims to provide long-term investment returns through holdings and attractive fully franked dividends, focusing on small and mid-sized companies [5][6] - A one-for-seven rights issue was executed to raise capital, allowing for portfolio rebalancing and lower management expense ratios [16][21] - The company plans to take a patient approach to deploying capital, focusing on long-term value rather than short-term market fluctuations [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term investment approach despite short-term volatility, emphasizing the importance of patience in capital deployment [63] - The company remains cautious about the current market environment, noting that high growth companies are well-rated, which may limit capital deployment opportunities [69][70] Other Important Information - The company has a history of paying out more in dividends than it receives from share purchase plans, indicating strong shareholder demand for investment opportunities [17] - The capital raising was well-received, with a take-up rate of 119%, leading to a fair outcome for shareholders [21][23] Q&A Session Summary Question: Where is the Australian market developing in a bull market? - The company noted that earnings and valuations drive share prices, but current economic growth is not strong enough to support significant re-ratings in valuations [67][68] Question: What percentage of portfolio revenue comes from global sources? - Approximately 35% of revenue from the top 20 stocks comes from offshore, with a mix of domestic and international businesses [72][73] Question: Why does the company still hold IDP? - The company believes IDP remains the market leader in its space despite current pressures, and it is important to weather the downturn [76][78] Question: What is the view on Macquarie Technology Group's development approval? - There are concerns about development approvals due to local council issues, but the company has faith in management's long-term decisions [80][82] Question: Why was Sigma Healthcare exited from the portfolio? - The exit was due to a rapid increase in value post-merger, making it difficult to justify maintaining a position given its size and valuation [84] Question: Thoughts on Gentrack's transition? - Gentrack has evolved into a robust business, but it may need time to consolidate its growth after a rapid increase in size [90] Question: Will IPD Group pursue further acquisitions? - The company expects IPD Group to continue acquiring businesses, but these will likely be smaller and not thesis-changing [93]

Financial Performance & Portfolio Activity - Mirrabooka successfully raised $85.1 million through an Entitlement Offer and Top Up Facility, with a total take up of approximately 119%[17] - New shares were offered at $3.06 and are entitled to a final dividend of 6.5 cents per share[17] - The company has a significant cash holding of 11% of the portfolio value[25] Key Contributors & Detractors - Top contributors to FY25 performance included Temple & Webster (+127%), Hub 24 (+93%), and Life360 (+97%)[18] - Key detractors from FY25 performance included IDP Education (-75%), OFX (-67%), and Reece (-42%)[19] Portfolio Composition - The top 20 holdings comprise a significant portion of the portfolio, with the largest holding at 5.6%[23] - The company maintains an investment flexibility through tax effective portfolio repositioning[16] Strategic Outlook - The company will maintain a focus on patience and discipline in its investment approach[25] - Market volatility is expected to create buying opportunities for mid and small cap investors[26]

Company Overview - Resmed is set to release its financial and operational results for the fourth quarter of fiscal year 2025 on July 31, 2025, after the NYSE closes [1] - The company is dedicated to creating innovative health technologies that enhance the quality of life for individuals in 140 countries [2] - Resmed's vision includes empowering people to achieve better sleep and breathing through personalized home healthcare solutions [2] Earnings Webcast Details - Following the earnings release, Resmed management will host a webcast to discuss the results and other forward-looking information [1] - The earnings webcast will be accessible via a specific link, with no outside phone lines used for access [1] - A replay of the webcast will be available on Resmed's investor relations website approximately two hours after the live event [2] Contact Information - For investor inquiries, Resmed provides a dedicated contact number and email [3] - Media inquiries can also be directed to a specific contact number and email [3] - Additional details regarding the webcast timing and international access are provided [3][4]

Core Viewpoint - ResMed (RMD) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Group 1: Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, specifically tracking EPS estimates from sell-side analysts [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Group 2: ResMed's Earnings Outlook - ResMed is projected to earn $9.48 per share for the fiscal year ending June 2025, indicating no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for ResMed has increased by 0.2%, reflecting a positive outlook for the company's earnings [8]. Group 3: Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - ResMed's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [10].

Group 1 - The article mentions that Anand Chokkavelu, Emily Flippen, and Jason Moser have no positions in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends ResMed, indicating a positive outlook on the company [1]

Core Viewpoint - ResMed Inc. is considered a strong candidate for long-term investment, categorized in the "buy and hold forever" bucket [1] Company Summary - ResMed Inc. is listed on NYSE under the ticker RMD and also trades on the OTC market as RSMDF [1]