Medical device company ResMed (NYSE:RMD) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
ResMed met analysts’ revenue expectations last quarter, reporting revenues of $1.29 billion, up 7.9% year on year. It was a mixed quarter for the company, with EPS in line with analysts’ estimates but constant currency revenue in line with analysts’ estimates.
Is ResMed a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ResMed’s revenue to grow 8.8% year on year to $1.33 billion, in line with the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.48 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ResMed has missed Wall Street’s revenue estimates three times over the last two years.
Looking at ResMed’s peers in the healthcare equipment and supplies segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Penumbra delivered year-on-year revenue growth of 13.4%, beating analysts’ expectations by 3.7%, and Boston Scientific reported revenues up 22.8%, topping estimates by 3.4%. Boston Scientific traded up 2.9% following the results.
Read our full analysis of Penumbra’s results here and Boston Scientific’s results here.
Investors in the healthcare equipment and supplies segment have had fairly steady hands going into earnings, with share prices down 1.8% on average over the last month. ResMed is up 8.5% during the same time and is heading into earnings with an average analyst price target of $268.93 (compared to the current share price of $280).
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