Balanced Portfolio Update - Resmed (RMD)
Date: 02/08/2024
*** GENERAL AVICE ONLY***
Current holding 5% allocation
Sleep apnoea devices maker ResMed rallied 1.5 per cent after quarterly revenue rose 9 per cent to $US1.2 billion ($1.85 billion) in the last quarter of fiscal 2024, taking quarterly dividends to US53¢ per share, up 10 per cent.
ResMed says revenues rose 9 per cent in the fourth quarter as expected as the medical device maker sold more breathing devices, masks and software.
ResMed, which is listed in the United States and Australia, said fourth quarter revenue rose 9 per cent to $US1.22 billion ($1.9 billion), which was broadly in line with market expectations.
While the revenue figure was stronger than expected, the company reported quarterly earnings per share (EPS) of $US1.98 ($3.05), which missed some analyst estimates.
ResMed shares, which have fallen sharply this year on concern that the rapid rise of weight-loss drugs will hurt demand for its products, were trading 4.5 per cent lower after the market closed in the United States.
“Our fourth quarter and full-year fiscal year 2024 results demonstrate strong performance across all sectors of our business,” Mick Farrell, chairman and chief executive said in a statement.
Conclusion
We remain positive on both Healthcare and ResMed’s business model. The affect of Sleep Apnea drugs on Resmeds business and futures revenues are greatly exaggerated, but will increase volatility as progress updates are provided from the drug companies
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