ResMed tops Q1 profit estimates as revenue is in line

ResMed Inc. (RMD) said on Oct. 29 that non-GAAP diluted earnings per share rose 14% to $2.91 in its fiscal first quarter, topping the $2.70 consensus estimate compiled by Finnhub.

Revenue was $1.41 billion, in line with the $1.41 billion estimate, and the company said it reaffirmed its fiscal 2027 non-GAAP EPS guidance. The results cover the quarter ended Sept. 30, according to a press release furnished with the company's 8-K.

Here's how the company did:

• Non-GAAP diluted EPS: $2.91 vs. $2.55 a year earlier, against $2.70 expected, according to Finnhub
• Revenue: $1.41 billion vs. $1.34 billion a year earlier, in line with the $1.41 billion expected, according to Finnhub
• GAAP diluted EPS: $2.92 vs. $2.37 a year earlier
• Net income: $418 million vs. $349 million a year earlier

Revenue rose 6% from a year earlier, or 7% on a core constant currency basis. That measure also excludes the Noctrix acquisition and the divestiture of the MatrixCare business.

It has risen in each of the last three quarters, from $1.34 billion to $1.46 billion, according to its SEC filings.

Segment results

Americas Sleep and Breathing Health revenue grew 7% on a core constant currency basis. Rest of World Sleep and Breathing Health grew 8%.

Residential Care Software revenue increased 5% on the same basis. The company said the remaining Brightree and MEDIFOX DAN businesses grew 8% after removing the divested MatrixCare business.

Fiscal 2027 guidance

The company reaffirmed non-GAAP diluted EPS guidance of $12.00 to $12.25 for fiscal 2027, the same range it gave on Aug. 6.

Chairman and CEO Mick Farrell said the company will "continue to build our core sleep and breathing health businesses by extending the reach of our digital health ecosystem."

Cash and capital returns

The company returned more than $1.0 billion to shareholders through share repurchases and dividends during the quarter. It bought $936 million of treasury stock and paid $95 million in dividends.

It also repaid $250 million of borrowings. Cash and cash equivalents fell to $1.01 billion at Sept. 30 from $1.47 billion at June 30.

Operating cash flow was $422 million and free cash flow was $374 million. Proceeds from divesting subsidiaries were $451 million, the company said.

The board declared a quarterly cash dividend of 66 cents per share. The record date is Nov. 12, the ex-dividend date is Nov. 11, and the dividend is payable Dec. 17. Holders of CHESS Depositary Interests on the Australian Securities Exchange will receive an equivalent amount in Australian currency.