ResMed (NYSE:RMD) shares ticked up today on first-quarter results that came in well ahead of the consensus forecast.
RMD shares were up 6.6% at $191.33 per share in mid-afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -1.1%, while the Dow Jones Industrial Average was down -1.4% at the same time.
The San Diego-based company posted profits of $178.4 million, or $1.22 per share, on sales of $751.9 million for the three months ended Sept. 30, 2020, for a 48.5% bottom-line gain on sales growth of 10.4%.
Adjusted to exclude one-time items, earnings per share were $1.27, 24¢ ahead of Wall Street, where analysts were looking for sales of $710.7 million.
ResMed attributed much of its revenue growth to the increased demand for its ventilator products during the COVID-19 pandemic. However, that was partially offset by a decrease in demand for sleep devices.
“Our first-quarter results reflect solid performance and positive trends across our business,” ResMed CEO Mick Farrell said in a news release. “During the quarter, we continued to support the global COVID-19 pandemic response, providing ventilators, masks, and circuits to countries in need around the world. In our core markets of sleep apnea, COPD and asthma, we are encouraged by the sequential improvement in new patient volume, as well as the ongoing strong adoption of our mask and accessories resupply programs.
“We have accelerated the launch of digital health solutions to help clinicians remotely diagnose, treat, and manage patients during the pandemic and beyond.”
ResMed did not offer guidance for the full 2020 financial year.
