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ResMed Inc. (RMD), headquartered in San Diego, California, manufactures, distributes, and markets medical devices and cloud-based software applications. Valued at $39.2 billion by market cap, the company offers a range of products for respiratory disorders, including diagnostic tools like ApneaLink Air and NightOwl, cloud-based platforms like AirView and myAir for patient monitoring, and U-Sleep for HME providers, connectivity solutions, as well as out-of-hospital software solutions. The sleep tech giant is expected to announce its fiscal fourth-quarter earnings for 2025 after the market closes on Thursday, Jul. 31.
Ahead of the event, analysts expect RMD to report a profit of $2.47 per share on a diluted basis, up 18.8% from $2.08 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect RMD to report EPS of $9.50, up 23.1% from $7.72 in fiscal 2024. Its EPS is expected to rise 10.2% year over year to $10.47 in fiscal 2026.
RMD stock has outperformed the S&P 500 Index’s ($SPX) 14.5% gains over the past 52 weeks, with shares up 30.5% during this period. Similarly, it outperformed the Health Care Select Sector SPDR Fund’s (XLV) 8.3% dip over the same time frame.
RMD’s recent success is driven by the introduction of a range of masks in its AirFit and AirTouch series, as well as advancements in its therapy-based software solutions, such as AirView, which have performed well in the U.S. market. RMD is also investing in artificial intelligence capabilities to improve patient adherence and outcomes. Cost reduction strategies, improved production processes, and new product launches have contributed to the company's positive performance. The company is focused on global brand unification and expanding manufacturing capacity to support market growth. Furthermore, the U.S. tariff exemptions for its medical devices provide further stability.
On Apr. 23, RMD reported its Q3 results, and its shares closed up more than 10% in the following trading session. Its adjusted EPS of $2.37 exceeded Wall Street expectations of $2.36. The company’s revenue was $1.29 billion, beating Wall Street forecasts of $1.28 billion.
Analysts’ consensus opinion on RMD stock is reasonably bullish, with an overall “Moderate Buy” rating. Out of 17 analysts covering the stock, nine advise a “Strong Buy” rating, two suggest a “Moderate Buy,” five give a “Hold,” and one recommends a “Strong Sell.” While RMD currently trades above its mean price target of $266.25, the Street-high price target of $294 suggests an upside potential of 7.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
