ResMed (NYSE:RMD) shares took a slight hit after hours despite on fourth-quarter results that beat the consensus forecast.
The San Diego-based respiratory support device maker posted profits of $177.8 million, or $1.22 per share, on sales of $770.3 million for the three months ended June 30, 2020, for a more than 158% bottom-line gain on sales growth of 9.3%.
Adjusted to exclude one-time items, earnings per share were $1.33, 11¢ ahead of Wall Street, where analysts were looking for sales of $746.9 million.
Increased demand for ResMed’s ventilator devices amid the COVID-19 pandemic contributed massively to the company’s growth in the fourth quarter, although it was partially offset by a decrease in demand for the company’s sleep devices.
“Our fourth-quarter results reflect the strength and resiliency of our business in today’s uncertain environment,” ResMed CEO Mick Farrell said in the news release. “Throughout our fiscal fourth quarter, we continued to support the COVID-19 pandemic response through increased manufacturing of our ventilators, including bilevels, and ventilation mask systems while also supporting our customers with digital health solutions and other innovative tools to enable remote care for patients.
“Looking ahead, we are confident in our ability to navigate through the ongoing challenging clinical and economic environment to deliver for all our stakeholders. Sleep labs and physician practices are reopening across many geographies, and we’re seeing accelerated adoption of digital health solutions which supports our long-term strategy. We remain vigilant and thoughtful about the outlook for our business as we continue to serve our customers, and we believe our strong foundation will accelerate our growth over the longer term.”
ResMed did not offer full-year guidance for 2021, nor did it offer projections for the upcoming first quarter of its fiscal year.
RMD shares closed the day up 0.1% at $202.96 per share, but were trading down -1.4% at $200.20 per share after hours. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day up 1.1%.