ResMed Inc’s 1Q adjusted EPS came in 10% above consensus forecasts and a 4% beat versus Citi’s forecast. Mask sales were below expectation, SaaS was in-line while device sales were higher than estimated. The broker retains its Neutral rating and $36.50 target price.
The Philips’ recall leaves a yearly market gap of around US$800m for CPAP devices and management expects to make long-term market share gains. Other than stating increased freight costs will weigh on margins, the company offered no other guidance.
Sector: Health Care Equipment & Services.
Target price is $36.50.Current Price is $37.17. Difference: ($0.67) – (brackets indicate current price is over target). If RMD meets the Citi target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
