ResMed (NYSE:RMD) shares ticked up today on third-quarter results that topped the consensus forecast with COVID-19-influenced demand for ventilators.
The San Diego-based company posted profits of $163.1 million, or $1.12 per share, on sales of $769.5 million for the three months ended March 31, 2020, for a 54.7% bottom-line gain on sales growth of 16.2%. Adjusted to exclude one-time items, earnings per share were $1.29, 29¢ ahead of Wall Street projections.
ResMed, a ventilator maker, saw a 12% revenue increase in the U.S., Canada and Latin America after the COVID-19 pandemic caused increased demand for ventilators and other devices like masks.
Revenue in Europe, Asia and other markets combined for 27% growth, which was similarly driven by the increased demand for respiratory technology.
Last month, under the U.S. Defense Production Act, the Health and Human Services Dept. issued a $31.98 million contract for ResMed to produce 400 ventilators by May 4, 1,150 by June 1 and 2,550 by July 13.
“We are operating during unprecedented times, and I am extremely proud of the way our global ResMed team has responded to the COVID-19 crisis,” ResMed CEO Mick Farrell said in a news release. “Our primary goals are the safety and well-being of our team members, and the preservation of life-helping people breathe while their immune system fights this coronavirus. We have rapidly pivoted our business to respond by ramping up production of life support ventilators, non-invasive ventilators, and ventilation mask systems for the people who need them most, wherever they live.
“We continue to execute our long-term strategy, supporting customers around the world with digital health technologies and out-of-hospital management software, enabling them to continue to provide better care for those suffering from sleep apnea, COPD, asthma, and for people in out-of-hospital care settings. As we progress through the global COVID-19 pandemic, we are delivering world-leading solutions to governments, health authorities, hospitals, physicians, providers, and, most importantly, to patients.
RMD shares were up 1.4% at $157.46 per share in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -1.9%.
