RMD 0.63% $38.11 resmed inc

Flow generator sales growth was very strong (+26%), but I sense...

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 7,936 Posts.
    lightbulb Created with Sketch. 1554
    Flow generator sales growth was very strong (+26%), but I sense the market already knew and expected this, as the good traction of the new product launches last year (Airsense 10) had been well flagged.

    The thing I suspect the market will focus on will be the sluggish mask growth numbers (down 1%), driven by ongoing pricing pressure which is having an impact on the Gross Margin.

    The weak Euro is also not helping Gross Margin, which - at 59.5%, - while still high was down almost 300 bp, and below management's earlier expectations of 61%.

    I suspect the stock will be down today, by around 3%, maybe 4%.

    But that's what you get with quarterly reporting, it can be a bit lumpy.

    The thing to bear in mind when it comes to investing in RMD is the fact that in just about every quarter there is some aspect of the result that is less-than-perfect (for example, this time last year the problem was that the top line growth was sluggish, while the Gross Margin was very high (~63%) ), but the ongoing wealth creation of the business in terms of its long-term earnings growth is almost without peer, and there is nothing going on in the industry in which RMD operates (technological, competitor, regulatory, need) that will change that.
 
watchlist Created with Sketch. Add RMD (ASX) to my watchlist
(20min delay)
Last
$38.11
Change
-0.240(0.63%)
Mkt cap ! $22.38B
Open High Low Value Volume
$38.50 $38.57 $37.66 $49.01M 1.287M

Buyers (Bids)

No. Vol. Price($)
1 6322 $38.11
 

Sellers (Offers)

Price($) Vol. No.
$38.12 8095 3
View Market Depth
Last trade - 16.10pm 27/11/2024 (20 minute delay) ?
RMD (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.