ResMed (NYSE:RMD) shares are down more than 11% today after the medical device company reported lower-than-expected earnings for its fiscal 1st quarter, despite growing sales and profits.
San Diego-based ResMed posted profits of $80.9 million, or 56¢ per share, on sales of $357.7 million for the 3 months ended Sept. 30. That represents bottom-line growth of 13.6% on sales growth of 5.3% compared with the same period last year.
But analysts on Wall Street were looking for earnings per share of 58¢, 2¢ ahead of ResMed’s results. Investors responded today by sending RMD shares down 11.5% to $49.83 apiece as of about 10:40 a.m. today.
"We continued to face a tough competitive product cycle this quarter. We have only just released our new mask products, but we were encouraged by their early sales. The Quattro Air is on its way to being one of the best mask launches ever. The Swift FX Nano, which was already selling well in Europe, was just launched in the U.S. in September with good reception. We have a rich pipeline of products scheduled for introduction over the course of this fiscal year, providing us with plenty of opportunities for robust growth ahead," CEO Mick Farrell said in prepared remarks. "The opportunities in sleep and respiratory care remain attractive; we continue to provide our customers with the right solutions to better manage their businesses while providing high quality products to improve compliance and patient care. We are focused on continuing to improve the quality of life for patients who suffer from sleep-disordered breathing and its related co-morbidities, such as cardiology and diabetes; respiratory disorders, including chronic obstructive pulmonary disease; preventing disease progression; and saving both in-patient and out-patient costs."
