ResMed (RMD) Tops Q3 EPS by 3c, Revenues Miss

ResMed (NYSE: RMD) reported Q3 EPS of $1.30, $0.03 better than the analyst estimate of $1.27. Revenue for the quarter came in at $768.8 million versus the consensus estimate of $793.17 million.

Third Quarter 2021 HighlightsAll comparisons are to the prior year period

• Revenue was comparable at $768.8 million; down 3% on a constant currency basis
• GAAP gross margin of 58.2%; non-GAAP gross margin contracted 40 bps to 59.6%
• Net operating profit increased 3%; non-GAAP operating profit up 2%
• GAAP diluted earnings (loss) per share of $(0.54); non-GAAP diluted earnings per share of $1.30

“Our March 2021 quarter results reflect the ongoing recovery of core patient flow across our business, while we anniversary the $35 million of incremental COVID-19 revenue in the same quarter last year. Excluding the COVID-19 revenue from the March 2020 quarter, we achieved positive revenue growth on both a headline and constant currency basis,” said Mick Farrell, ResMed CEO. “Our global team is supporting patients and all of our customers as the most recent waves of COVID-19 cases impact parts of Europe, Asia, and South America. I am extremely proud of our ResMed team as they innovate with new digital pathways for patients to be diagnosed and treated for their sleep apnea, COPD, asthma, and out-of-hospital needs.

"During the quarter we also made substantial progress toward resolving our long-running dispute with the Australian Tax Office. Although we do not have a final agreement, we have taken a reserve of $255 million, reflecting our estimate of the net impact of a potential settlement. Our next steps are to agree on the final terms of a resolution giving us clarity for the future.

"Going forward, we see accelerated awareness of the importance of respiratory health, growing adoption of digital health, and an increased focus on the importance of healthcare delivered at home. We are confident in accelerated growth in patient flow, and ongoing progress toward our goal of improving 250 million lives in out-of-hospital healthcare in 2025.”

For earnings history and earnings-related data on ResMed (RMD) click here.

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