ResMed (NYSE: RMD, ASX: RMD) today reported fourth-quarter results that beat the consensus forecast on Wall Street amid continued adoption of its next-gen AirSense 11 CPAP.
CEO Mick Farrell said in a news release that ResMed launched the fully cloud-connectable AirSense 11 into several new European countries. The AirSense 11 is also selling well in the U.S., the company said.
Farrell also detailed ResMed’s strategy to deal with the semiconductor shortage facing ResMed and many other medtech companies:
“We also introduced our newest device to meet the needs of an industry crisis in PAP supply, the AirSense 10 Card-to-Cloud solution, during the quarter. The card-to-cloud device was launched into the U.S. and many other markets and is designed to work without an embedded communications module. This redesign allowed us to increase deliveries to customers and ultimately to get many more patients onto life-saving sleep apnea and respiratory care therapy. Both of these platforms, as well as our legacy, market-leading, 100% cloud-connected AirSense 10 device, will support solid growth throughout FY23.”
ResMed earned $195.1 million, or $1.33 per share, off $914.7 million in revenue for the quarter ended June 30, 2022. Earnings were the same as in Q4 2021, while the top line was up 4%.
Adjusted to exclude one-time items, ResMed saw EPS of $1.49, 3¢ ahead of The Street. Analysts expected adjusted EPS of $1.46 off $912.97 million.
During Q4 2022, ResMed annualized $20 million in COVID-related ventilator sales. There was also incremental revenue in the range of $60 to $70 million related to competitor Philips’ huge recall of respiratory devices.
“Looking ahead, we are confident in our ability to grow steadily throughout fiscal year 2023 and to continue delivering for all stakeholders,” Farrell said. “We are investing in R&D to drive accelerated adoption of digital health solutions in sleep apnea, COPD, and outside-hospital care, as we progress towards our goal to improve 250 million lives in 2025.”
Full-year revenue was up 12% to $3.6 billion.
The company’s board today declared a quarterly cash dividend of 44¢ per share, payable on Sept. 22.
Investors reacted by sending RMD shares up more than 1% to $244.16 apiece in after-hours trading.