Company Overview - Kestra Medical Technologies, Ltd. is a wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease through innovative monitoring and therapeutic intervention technologies [3]. Leadership Appointment - Conor Hanley has been appointed as an independent director to the board of Kestra Medical Technologies, effective June 4, 2025 [1]. - Brian Webster, President and CEO of Kestra, expressed enthusiasm about Hanley's appointment, highlighting his deep expertise in medical technology and cardiac care as a strategic resource for the company [2]. Conor Hanley's Background - Mr. Hanley is currently the CEO of FIRE1, a venture-backed company focused on connected medical device solutions for heart failure [2]. - He has held senior management roles at ResMed, leading the cardiology business unit and chronic disease management solutions globally [2]. - Hanley co-founded and served as CEO of BiancaMed, a medical device company acquired by ResMed, and holds a PhD in chemical engineering and an MBA [2]. Strategic Focus - Mr. Hanley expressed his honor in joining the Kestra board and emphasized the company's role in driving innovation in the wearable cardioverter defibrillator market [3]. - The company aims to scale its operations and fulfill its commitments to patients and prescribers [3].

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service also includes Zacks Style Scores, which are designed to assist investors in selecting stocks with the highest potential to outperform the market in the short term [2] Group 2: Zacks Style Scores - Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each providing insights based on different investment strategies [3][4][5][6] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score evaluates a company's future earnings and financial health to identify stocks with sustainable growth potential [4] - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Group 3: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B [9] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [10] Group 4: Company Spotlight - ResMed, Inc. - ResMed, Inc. is a key player in the market for sleep-disordered breathing and respiratory disorder treatment products, holding a 3 (Hold) Zacks Rank and a VGM Score of B [11] - The company is particularly appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 22.8% for the current fiscal year [12] - Recent upward revisions in earnings estimates by five analysts for fiscal 2025 have led to an increase in the Zacks Consensus Estimate to $9.48 per share, alongside an average earnings surprise of 4.2% [12]

Company Overview - ResMed (RMD) shares have increased by approximately 4% over the past month, underperforming the S&P 500 index [1] - The stock currently holds a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the upcoming months [4] Earnings Estimates - Estimates for ResMed have trended upward over the past month, suggesting positive sentiment among analysts [2][4] - The stock has an aggregate VGM Score of C, with a Growth Score of B and a Momentum Score of D, indicating mixed performance across different investment strategies [3] Industry Comparison - ResMed is part of the Zacks Medical - Products industry, where another player, Neogen (NEOG), has seen a 19% increase in its stock price over the past month [5] - Neogen reported revenues of $220.98 million for the last quarter, reflecting a year-over-year decline of 3.4%, with an EPS of $0.10 compared to $0.12 a year ago [5] - Neogen's earnings estimates for the current quarter remain unchanged at $0.10 per share, but the Zacks Consensus Estimate has decreased by 23.8% over the last 30 days, resulting in a Zacks Rank of 4 (Sell) for Neogen [6]

Core Insights - ResMed Inc. (RMD) experienced growth in Q3 of fiscal 2025, primarily driven by strong performance in its Mask business and advancements in digital health technology, despite facing challenges from a tough macroeconomic environment and intense competition [1][8]. Financial Performance - ResMed has a market capitalization of $36.00 billion and an earnings yield of 3.9%, significantly higher than the industry's 0.5% [2]. - The company has consistently exceeded earnings estimates over the past four quarters, achieving an average surprise of 4.23% [2]. - The Zacks Consensus Estimate for fiscal 2025 earnings has increased by 0.3% to $9.48 per share, with revenue estimates at $5.12 billion, reflecting a 9.3% year-over-year increase [10]. Business Segments - **Mask Sales**: The demand for ResMed's mask portfolio remains strong, benefiting from a competitor's recall. The company has introduced a comprehensive range of masks, including AirFit and AirTouch, to enhance patient adherence through advanced software solutions like AirView [3][5]. - **Product Launches**: The AirFit F40 mask is performing well in the U.S. market, with plans for global expansion. The recent launch of the AirTouch N30i has received positive early feedback [4]. Growth Drivers - ResMed is advancing its digital health technology initiatives, focusing on cloud-based software products like AirView and myAir, which enhance the connected healthcare ecosystem [6]. - The company is investing in AI-driven capabilities to improve patient therapy adherence and outcomes, with positive early testing feedback for its AI products [7]. Challenges - **Macroeconomic Factors**: Global economic conditions, including issues stemming from the Middle East conflict, currency fluctuations, and inflationary pressures, pose risks to ResMed's growth and profitability. SG&A expenses rose by 6.7% year-over-year, while R&D expenses increased by 8.9% [8]. - **Competitive Landscape**: The market for sleep-disordered breathing products is highly competitive, with challenges arising from consolidation in the healthcare industry and competition from affiliates of ResMed's customers [9].

Group 1 - The Reserve Bank of Australia (RBA) is expected to lower the cash rate by 0.25 percentage points to 3.85%, with further cuts anticipated before Christmas, making Australian small-cap stocks more attractive compared to global markets [2][3] - Small-cap stocks are sensitive to economic growth changes, and the S&P/ASX 200 index reached a three-month high, rebounding nearly 14% since its low on April 7 [3] - Key investment sectors include consumer and real estate, with specific interest in outdoor advertising company oOh!media and furniture retailer Nick Scali, which is expected to perform well during the rate decline [4][6] Group 2 - Ophir Asset Management is optimistic about Nick Scali and has increased holdings in small appliance manufacturer Breville, viewing them as sensitive to economic cycles [6] - The firm also invested in Pinnacle, betting on a recovery in the real estate market, and believes the Australian stock market is more attractive than the U.S. market due to larger and faster expected rate cuts [6] - Despite optimism for small-cap stocks, there is caution regarding potential market corrections, with defensive stocks like ResMed and AUB Group being held to hedge risks [8]

Core Insights - Resmed has been named the Official Sleep Partner of the Qatar Airways British & Irish Lions Tour to Australia, highlighting its commitment to promoting sleep health in sports [1][3][6] Company Overview - Resmed is a leading health technology company focused on sleep, breathing, and home care, aiming to empower individuals to live healthier lives through innovative technologies [1][13] - The company operates in 140 countries and emphasizes the importance of quality sleep as a critical component of overall health [13] Campaign Details - The 'Tackle Your Sleep' campaign will feature legendary rugby players and aims to raise awareness about sleep health issues affecting both players and fans [3][5] - The campaign will provide advice and tools to improve sleep quality, emphasizing its significance alongside exercise and diet [3][5] Health Implications - Poor sleep can negatively impact mental and physical health, relationships, and daily performance, particularly for athletes [4][5] - A study indicated that half of the rugby and cricket players surveyed were classified as poor sleepers, with many experiencing significant daytime fatigue [4][5] Tour Information - The British & Irish Lions Tour will take place over six weeks, featuring matches in six cities across Australia, with an estimated 40,000 fans participating [2][8] - The Lions will play a total of 10 matches, including three Test matches against the Wallabies [8]

Core Insights - Resmed has acquired VirtuOx, enhancing its capabilities in virtual care and expanding access to diagnostic services for sleep, respiratory, and cardiac conditions [1][2][5] Group 1: Acquisition Details - The acquisition reflects Resmed's commitment to improving care delivery by making it more accessible and patient-friendly [2][4] - VirtuOx's virtual testing platform offers fast, flexible, and affordable diagnostic options, particularly for underdiagnosed conditions like obstructive sleep apnea (OSA) [3][5] - VirtuOx will operate as a fully owned subsidiary of Resmed, maintaining its brand and leadership team post-acquisition [6] Group 2: Strategic Implications - The integration of VirtuOx's diagnostic capabilities is expected to streamline the diagnostic process and reduce patient drop-off rates [4][5] - The acquisition supports the growing demand for home-based care, driven by increased awareness and digital innovation [5] - Resmed aims to deepen relationships with healthcare providers, sleep labs, and home medical equipment providers through this acquisition [5][6]

Core Insights - ResMed Inc reported third-quarter adjusted EPS of $2.37, slightly above the consensus estimate of $2.36 [1] - Quarterly sales rose 8% year-over-year to $1.29 billion, matching estimates, with a 9% increase on a constant currency basis [1] - Gross margin improved by 140 basis points to 59.3%, driven by manufacturing efficiencies and favorable product mix [1] Financial Performance - Adjusted operating income increased by 13% to $444.6 million [2] - Adjusted net income rose by 11% to $348.5 million [2] - Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9% [3] - Revenue in Europe, Asia, and other markets, excluding Residential Care Software, increased by 8% on a constant currency basis [3] Product and Market Insights - Increased demand for sleep devices and growth in the Residential Care Software business contributed to sales growth [1] - Residential Care Software revenue grew by 10% on a constant currency basis, indicating continued organic growth [3] Regulatory and Analyst Commentary - Management confirmed that ResMed's products are exempt from tariffs under the Nairobi Protocol, which was approved in 2009 [2][4] - Analyst reactions include an 11% increase in ResMed stock price, with various price target adjustments from different firms [3][4]

Core Insights - ResMed Inc. reported adjusted earnings per share (EPS) of $2.37 for Q3 fiscal 2025, reflecting an 11.3% year-over-year increase and surpassing the Zacks Consensus Estimate by 0.4% [1] - The company's revenues for the same quarter reached $1.29 billion, marking a 7.5% year-over-year growth and exceeding the Zacks Consensus Estimate by 0.5% [3] Financial Performance - Adjusted gross profit increased by 10.5% to $773.8 million, with an adjusted gross margin of 59.9%, up 138 basis points year over year [9] - Selling, general and administrative expenses rose 6.7% to $245.3 million, while research and development expenses increased by 8.9% to $83.9 million [10] - Adjusted operating income was $444.6 million, up 13% from the previous year, with an adjusted operating margin of 34.4%, expanding by 154 basis points [10] Revenue Breakdown - The Sleep and Breathing Health segment generated revenues of $1.13 billion, an 8% increase year over year, with global device sales totaling $676.2 million, up 6% [6] - In the Residential Care Software segment, revenues grew 9% year over year to $161.2 million, slightly below projections [8] Market Reaction - Following the earnings announcement, ResMed's shares rose by 2.6% in after-market trading [2] Strategic Developments - The company launched the NightOwl, an FDA-cleared home sleep apnea test, and introduced a brand evolution to unify its brand portfolio [15]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...