A Peek at ResMed's Future Earnings

ResMed RMD is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.

Analysts estimate that ResMed will report an earnings per share (EPS) of $2.04.

ResMed bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

Last quarter the company beat EPS by $0.02, which was followed by a 4.23% increase in the share price the next day.

Here's a look at ResMed's past performance and the resulting price change:

Market Performance of ResMed's Stock

Shares of ResMed were trading at $239.98 as of October 22. Over the last 52-week period, shares are up 70.56%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on ResMed

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on ResMed.

Analysts have given ResMed a total of 8 ratings, with the consensus rating being Neutral. The average one-year price target is $235.38, indicating a potential 1.92% downside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of IDEXX Laboratories, DexCom and GE HealthCare Techs, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for IDEXX Laboratories, with an average 1-year price target of $543.75, suggesting a potential 126.58% upside.
• DexCom received a Outperform consensus from analysts, with an average 1-year price target of $97.44, implying a potential 59.4% downside.
• GE HealthCare Techs received a Buy consensus from analysts, with an average 1-year price target of $94.67, implying a potential 60.55% downside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for IDEXX Laboratories, DexCom and GE HealthCare Techs, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

ResMed ranks in the top for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.

Delving into ResMed's Background

ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.

A Deep Dive into ResMed's Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, ResMed showcased positive performance, achieving a revenue growth rate of 9.01% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: ResMed's net margin is impressive, surpassing industry averages. With a net margin of 23.89%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): ResMed's ROE excels beyond industry benchmarks, reaching 6.16%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): ResMed's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.27% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: ResMed's debt-to-equity ratio is below the industry average. With a ratio of 0.18, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for ResMed visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.