RMD - ResMed Inc.

[galumay]

It will be interesting to watch how the market reacts to this news.

Well they certainly paid top dollar!

 

[basilio]

Resmed is always improving it's product range and has a captive market. I'm punting on teh SP to continue its trajectory in 2020.

(Advisory warning. I'm a hoplelees tipster. SELL NOW!)

 

[qldfrog]

One of my year competition entry:
if in a crash, as a medical and established, could play well with USD earnings; if then gold collapses in a crash second stage (all focus in timing) this could remain as an out-performer

 

[Dona Ferentes]

How RMD tracking?

ResMed is looking to double or triple the output of ventilators, and scale up ventilation mask production more than tenfold to meet surging demand from hospitals treating critically ill COVID-19 patients around the world. Resmed is one of the top five global manufacturer of ventilators – which are crucial in the treatment of patients with severe COVID-19 symptoms – and top two manufacturer of bilevels and masks. That makes it a critical player in fighting the pandemic.

A ResMed spokesman told The Australian Financial Review that when the news from the virus epicentre of Wuhan in China began trickling out in January, the company began ramping up production.

"Last year ResMed produced tens of thousands of ventilators, we are doubling or tripling that level this year to meet this demand," he said. "We were watching the outbreak along with everyone else and we knew there was going to be a heightened need for ventilators."

 

[qldfrog]

Not that great vs some if the stars this year but still in one of my live system so must not be completely bad.have to look details

 

[Dona Ferentes]

The blurring of technology and healthcare is taking medical-device companies in new directions. ResMed could transform into a global health-solutions company that uses data to identify a range of medical conditions during sleep

Verily, a division of Alphabet, in 2018 formed a joint venture with Australian healthcare company ResMed. They are using technology to identify people with undiagnosed and untreated sleep apnoea.

... and with Google's search engine and algorithms powering AI involved in early detection and prevention of disease, those with a sleep apnoea machine are already linked to a wearable device, and providing insights (probably more than they think). My partner uses a Resmed machine, and recently upgraded - bells, whistles, internet connected. When there was a malfunction, she called the service centre (part of Paragon PGC, interestingly) and they could see the issue. How long from being a response-focused service to proactive intervention? And blur the doctor-patient nexus?

 

[Dona Ferentes]

ResMed has overcome challenges posed by a shortage of critical electronic components, recording a 16 per cent jump in revenue for the first half. With $US1.8 billion in revenue, its net profit rose 13 per cent to $US405.4 million.

The company narrowly missed analyst consensus estimates, according to Bloomberg, which had predicted the company would generate $US1.83 billion revenue in the first half. It was also tipped to bank $US623.7 million of earnings before interest, tax, depreciation and amortisation and a net profit of $US408.1 million.

The dual-listed medtech business has faced “extraordinary demand” for its products thanks to competitor Philips’ recall of its Continuous Positive Airway Pressure (CPAP), Bi-Level Positive Airway Pressure (Bi-Level PAP) devices and mechanical ventilators, due to risks posed by a foam component in the devices.

And declared a quarterly cash dividend of $0.42 per share.

 

[Miner]

ResMed has overcome challenges posed by a shortage of critical electronic components, recording a 16 per cent jump in revenue for the first half. With $US1.8 billion in revenue, its net profit rose 13 per cent to $US405.4 million.

The company narrowly missed analyst consensus estimates, according to Bloomberg, which had predicted the company would generate $US1.83 billion revenue in the first half. It was also tipped to bank $US623.7 million of earnings before interest, tax, depreciation and amortisation and a net profit of $US408.1 million.

The dual-listed medtech business has faced “extraordinary demand” for its products thanks to competitor Philips’ recall of its Continuous Positive Airway Pressure (CPAP), Bi-Level Positive Airway Pressure (Bi-Level PAP) devices and mechanical ventilators, due to risks posed by a foam component in the devices.

And declared a quarterly cash dividend of $0.42 per share.

was market expecting more ?

 

[Dona Ferentes]

ResMed’s revenues increased by 12 per cent to $US864.5 million in the March quarter lead by strong demand for sleep and respiratory care devices. A recent product recall by one of ResMed’s competitors also helped.

The company reported diluted earnings per share of $US1.22. Gross margin decreased by 140 basis points due to higher freight and manufacturing costs. Revenue in Europe, Asia, and other markets grew by 11 percent.

- has sold down from that $40 high of last Aug/ Sept to be just above $30. (*ten years ago it was $4)

 

[Miner]

ResMed’s revenues increased by 12 per cent to $US864.5 million in the March quarter lead by strong demand for sleep and respiratory care devices. A recent product recall by one of ResMed’s competitors also helped.

The company reported diluted earnings per share of $US1.22. Gross margin decreased by 140 basis points due to higher freight and manufacturing costs. Revenue in Europe, Asia, and other markets grew by 11 percent.

- has sold down from that $40 high of last Aug/ Sept to be just above $30. (*ten years ago it was $4)

ResMed's success is more or less directly proportional to sleepless nights of many of us

 

[Dona Ferentes]

The blurring of technology and healthcare is taking medical-device companies in new directions. ResMed could transform into a global health-solutions company that uses data to identify a range of medical conditions during sleep.

ResMed has reported an 18 per cent increase in revenue to $US4.2 billion ($6.41 billion) for the full financial year, as chief executive Mick Farrell outlined plans to launch artificial intelligence products for patients and doctors.

ResMed reported a full-year net income of $US897 million, up 15 per cent, and gross margin declined by 0.8 per cent to 55.8 per cent thanks to higher component costs, warranty increases and freight costs.

It declared a US48¢ per share quarterly dividend.

Mr Farrell said early testing of its new AI products was “very positive” and ResMed planned to introduce several AI-powered data products for doctors and patients over the next several quarters.

 

[Dona Ferentes]

fair to say that the analysts' expectations were not met?

As low as $29.12 when trade resumed.

 

[Miner]

ResMed has reported an 18 per cent increase in revenue to $US4.2 billion ($6.41 billion) for the full financial year, as chief executive Mick Farrell outlined plans to launch artificial intelligence products for patients and doctors.

ResMed reported a full-year net income of $US897 million, up 15 per cent, and gross margin declined by 0.8 per cent to 55.8 per cent thanks to higher component costs, warranty increases and freight costs.

It declared a US48¢ per share quarterly dividend.

Mr Farrell said early testing of its new AI products was “very positive” and ResMed planned to introduce several AI-powered data products for doctors and patients over the next several quarters.

As I said last year, Remed increases market share and revenue with more people spend sleepless nights.
No rocket science as with increased mortgage rate, high inflation many of us are having sleepless nights.

 

[DrBourse]

Good to see RMD is back to within its last years IV calculations of $23.47 to $27.83....

Another example of the 3 Valuations at play - The Co's, The Calculated IV, & The Broker/Analysts Guestimate....
This years Calcs will be interesting when I eventually get around to them...

 

[Miner]

Good to see RMD is back to within its last years IV calculations of $23.47 to $27.83....

Another example of the 3 Valuations at play - The Co's, The Calculated IV, & The Broker/Analysts Guestimate....
This years Calcs will be interesting when I eventually get around to them...

@DrBourse - I will be keen to hear more from you on RMD as well. DNH.
However, with increased obesity, snoring and sleep apnoea definitely the CPAP is a big business for RMD and Fisher Paykel.
Having said that the inconvenience in using CPAP machine forced me to use dental implants (unfortunately not a cheaper option yet and lesser people have experience on this technique/ option including the sleep scientists in Perth) and I am a happy user of that. So potentially there will be many who will be shy of using CPAP.
Met Yoga therapist and she provided some good yoga techniques to avoid sleep apnoea with key solution to reduce obesity however (hurting my pride)
Bottom line the alternatives to RMD products are coming in a bigger way than it was some 5 years back.

 

[DrBourse]

Hi Miner.....
Not sure when the RMD Financials will hit the deck - I had a note that they were due 11/8/23, not so sure abt that now.....

The above 4/8/23 announcement is all UNAUDITED & UNSIGNED....
Only Sheep & Beginners make decisions on that info, way too many 'things' go missing B4 the Final ResMed Form 10-k Annual Report is issued..... Hence the current SP 'Knee Jerk Reaction".....
Guess I will post something early Sept....
Cheers....

 

[Miner]

Hi Miner.....
Not sure when the RMD Financials will hit the deck - I had a note that they were due 11/8/23, not so sure abt that now.....

Last year we had the following 17 day sequence of announcements B4 the Annual Report was released....
View attachment 160728

This year we have only rec'd one (below) dated 4/8/23, (guess that was the one I expected on 4/8/23)....
View attachment 160729

So if RMD are true to form it may be another 2 weeks B4 they release the Final Audited "CSL Annual Report".....
Sheep & Beginners work off Briefings, Results Announcements or Statutory Accounts, which by the way are USUALLY UNAUDITED - I don't, because way too many 'things' go missing B4 the Annual Report lobs in our court....

Guess I will post something early Sept....

Cheers....

@DrBourse
Thanks.
It looks you are really a Ph D on serious term.
Very technical and analytical through the book, way above the paycheck of a simple miner like me.
Thanks again for disseminating some good knowledge.

 

[Telamelo]

 

[DrBourse]

Hi Miner.....
Not sure when the RMD Financials will hit the deck - I had a note that they were due 11/8/23, not so sure abt that now.....
View attachment 160730
The above 4/8/23 announcement is all UNAUDITED & UNSIGNED....
Only Sheep & Beginners make decisions on that info, way too many 'things' go missing B4 the Final ResMed Form 10-k Annual Report is issued..... Hence the current SP 'Knee Jerk Reaction".....
Guess I will post something early Sept....
Cheers....

Hi Miner.....
My thoughts on RMD are below - All Ducks were in a line - I'm in just B4 11am....

DYOR.....
Cheers DrB

 

[Dona Ferentes]

a factor in the drop...

ResMed is coming under increasing pressure from short-sellers who are banking on Ozempic, the diabetes treatment which has become a popular weight loss drug, reducing demand for sleep apnoea products.

The company is among a number of medical technology firms that have been sold off by shareholders recently as investors bank on weight loss lessening demand for devices...

On an investor call in June, ResMed chief operating officer Robert Douglas acknowledged Ozempic’s rapid rise and weight loss success.

“We were having similar discussions years ago when bariatric surgery first came out, and people say, that’s clearly going to be a threat to your business,” Mr Douglas said. “Obesity is a contributing factor, but it’s absolutely not the only contributing factor. And then if you look at the levels of obesity versus the physiology of individual patients, there are many, many sleep apnoea patients more than we can manage at the moment.”

“Having some people have their obesity improved by the medication may make them better CPAP patients, better patients to be on CPAP. And clearly for some patients, it will mean they don’t need it as well. But we wouldn’t be able to measure it.”

CPAP, or continuous positive airway pressure therapy, is the key product manufactured by ResMed. The company has seen a surge in sales – revenues rose 23 per cent to $US1.1 billion in the three months to June 30, partly helped by a recall of a rival treatment produced by Philips.