Competitor Recall Continues To Show Opportunities For ResMed

Competitor Recall Continues To Show Opportunities For ResMed
  • ResMed Inc RMD posted Q4 sales of $914.7 million, +4% Y/Y (+8% on a constant currency basis), beating the consensus of $912.97 million.
  • Adjusted EPS reached $1.49, up from $1.35 a year ago.
  • The company also increased its quarterly dividend to $0.44 from $0.42 per share.
  • Keybanc reiterates the Overweight rating and price target of $276. 
  • The analyst says that after resetting near-term supply chain expectations, visibility appears to be increasing and management's tone seemed more optimistic around key moving pieces to Keybanc's thesis, including: 
    • Q4 constant currency growth exceeded Keybanc's expectations, while FX limited more upside.
    • The management expects a sequential improvement in device production volumes through FY23 and an incremental step in masks & accessories growth.
    • Koninklijke Philips NV's PHG recall issues continue to present opportunities for ResMed, and the company may finally be in a position to address more fully the opportunities presented by PHG's recall.
  • Price Action: RMD shares closed down 0.42% at $239.85 on Friday.

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