ResMed Inc RMD posted Q3 profits of $247.8 million, with adjusted EPS of $1.68, up from $1.32 a year ago, beating the consensus of $1.59.
Revenues increased 29% to $1.12 billion, as continued growth reflects a ramp-up in production due to growing demand.
“During the third quarter, we significantly ramped up production and delivery of our cloud-connected flow generator devices to meet ongoing high demand from customers, resulting in strong device sales growth across our global markets,” said Mick Farrell, ResMed CEO.
“We now have full global availability of our connected AirSense 10 platform while we continue to ramp production and availability across more geographies of our AirSense 11 platform.
ResMed did not provide financial guidance for the remainder of its 2023 fiscal year.
William Blair says that with the supply opening up and fundamental catalysts over the next 18 months, ResMed is well-positioned to focus on driving both short- and long-term durable growth.
With strong pull-through on mask sales starting to fruition in recent quarters, durable growth benefits from these share gains are expected. The analyst reiterates Outperform rating.
Needham writes that it’s unclear how long Philips will be out of the flow generator market. The analyst expects Philips could reenter the market as soon as 1H23, or its FDA consent decree could keep it out for several more years.
If Philips does reenter the market in CY23, RMD’s growth could slow as Philips recaptures some of its former market share. The analyst maintains a Hold rating.
Price Action: RMD shares are up 6.73% at $240.46 on the last check Friday.