Shares in ResMed Inc. experienced a significant surge, rising 5.2 per cent in morning trade following the release of its December quarter results. According to Citi analyst Laura Sutcliffe, the company’s performance modestly exceeded consensus estimates for both revenue and earnings. ResMed is a global leader in manufacturing and distributing medical equipment for respiratory disorders like sleep apnoea, COPD, and other chronic diseases. The company also provides cloud-based software solutions for remote patient monitoring and care.
ResMed reported total sales of $US1.42 billion, marking an 11 per cent increase compared to the prior period and surpassing consensus estimates by 2 per cent. Mask sales, a key indicator of the company’s performance, reached $US530 million, exceeding expectations by 4 per cent. The company’s core gross margin also outperformed expectations, beating estimates by 20 basis points.
Sutcliffe noted that these results are likely to ease investor concerns regarding mask sales outside the US, which had shown weakness in the previous quarter. The company had reassured investors that performance in this area would improve in the current quarter, and the latest figures appear to support this outlook.
Looking ahead, Sutcliffe anticipates increased attention on the potential for further gross margin improvements beyond the end of the 2026 financial year, following the 20 basis point beat. The positive results and optimistic outlook have seemingly bolstered investor confidence, driving the increase in ResMed’s share price.
