William Blair Reiterates Outperform Rating on ResMed (RMD)

William Blair is out with a research report this morning, where it reiterates its Outperform rating on ResMed Inc. (NYSE: RMD).

The WB analysts said, “ResMed reports fiscal fourth-quarter results Thursday, August 5, and we expect another strong quarter on a constant-currency basis. We expect fourth-quarter revenues to be $291 million, up 17.5% constant currency and 15.5% organic, with EPS up 10% against a whopping 57.2% comp.
Two-year rolling comps remain compelling and our outlook is for mid-teens growth on both lines over time. We believe ResMed again took share this quarter.”

They added, “With approximately 35% of the company’s revenue coming from euro-based countries, we also updated our model to reflect the recent weakening of the euro against the U.S. dollar—and the resulting negative impact to reported revenue."

"At less than 10% of revenues, the stronger yen has only a modest impact. Critically, the company’s natural and synthetic hedges, in our view, helped to alleviate some of the headwind felt from the weakening euro and strengthening Aussie dollar. We also expect investors to focus on the organic performance, which according to our April survey—should be strong, due to the continued health of the underlying SDB market, ongoing favorable mix shift, and market share gains.”