ResMed
(NYSE: RMD)
shares are down on fourth-quarter sales and profits that missed Wall Street’s expectations.
The device manufacturer’s stock was trading around $183.58 per share near noon, approaching the 52-week low of $181.50.
The stock hasn’t closed below $188 since April 2021, when competitor Philips initiated a recall of millions of continuous positive airway pressure (CPAP) devices. ResMed has had the CPAP device market to itself since then.
MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — is relatively unchanged today.
The San Deigo–based sleep respiratory technology maker posted profits of $228.7 million. That amounts to $1.56 per share on sales of $1.12 billion for the quarter ended June 30, 2023.
ResMed profits decreased 18% compared to the prior-year quarter but posted sales growth of 23%.
Adjusted to exclude one-time items, earnings per share were $1.60. Wall Street analysts were expecting adjusted EPS of $1.69 on sales of $1.14 billion.
“ResMed’s fourth quarter and full-year 2023 results reflect strong double-digit growth as we continue to produce and deliver cloud-connected flow generator device volume to meet the ongoing strong global demand from patients, accompanied by high growth of our market-leading patient interface and software solutions,” ResMed Chair and CEO Mick Farrell said in a news release. “The combined global supply of our cloud-connected platforms, AirSense10 and AirSense11, have enabled us to support all available customer demand for CPAP and APAP devices across the global market.”
Needham & Co. kept its Hold rating on RMD shares. Senior research analyst Mike Matson said: “It’s unclear how much longer Philips will be out of the flow generator market; we think that it could reenter the market as soon as C2H23 or its FDA consent decree could keep it out of the market for several more years. If Philips does reenter the market in the nearer-term, we think that RMD’s growth could slow as Philips recaptures some of its former market share.”
Related: ResMed finds a solution to semiconductor shortage, as well as some humor in it
