ResMed's Profits Surge on Strong Earnings Report
Behind ResMed's soaring profits
The most important driver of ResMed's profit growth was strong demand for the company's medical devices and software -- particularly its sleep devices. ResMed also reported double-digit percentage revenue growth for its mask products and accessories. Software-as-a-service revenue rose by 8% year over year.
ResMed's improving margins
The company's gross margins rose by 260 basis points on a GAAP and non-GAAP basis. Management attributed those improvements mainly to reduced freight and manufacturing costs.
Is ResMed stock a buy?
Worries that the growing use of weight-loss drugs would lead to a reduction in the market for ResMed's sleep devices were overblown. ResMed CEO Michael Farrel highlighted that patients taking certain drugs are more likely to start PAP therapy. After a strong fiscal Q3, ResMed remains an attractive investment option.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.