ResMed jumps on Q2 earnings beat

ResMed (NYSE:RMD) saw shares jump after releasing Q2 earnings that topped the street in revenue and earnings.

The San Diego, Calif.-based reported profits of $90.5 million, or 65¢ per share, on sales of $454 million for the 3 months ended December 31.

That amounts to a 0.7% bottom-line slide on sales growth of 7.5% compared with its Q2 earnings last year.

Adjusted to exclude 1-time items, profits were $97.5 million, or 69¢ per share. That tops Wall Street analysts expectations, who were looking for 68¢ per share

Stocks have risen approximately 6.6% to $57.60 as of 3:59 p.m. EST.

“We remain focused on delivering strong long-term growth from our sleep-disordered breathing and respiratory care businesses.  Our team continued to deliver double-digit constant currency growth this quarter. Our Americas region was a significant contributor this quarter, as our customers continued to show their strong preference for our offerings, including Air Solutions cloud-based software, AirSense devices, and AirFit patient interface systems. We have expanded our respiratory care business into the field of long-term oxygen therapy. Last week we announced a definitive agreement to acquire Inova Labs in Austin, Texas. This will add portable oxygen concentrators, complementing our non-invasive ventilators, and providing yet another ResMed therapy option for patients with chronic obstructive pulmonary disease, or COPD. In the 15 months since we launched our Air Solutions platform, ResMed has transformed into a tech-driven medical device company. As the global leader of connected care for medical devices, we are liberating healthcare data, improving outcomes, and unlocking value by providing actionable information for patients, physicians, providers and payors, literally every morning,” CEO Mick Farrell said in prepared remarks.

Earlier this month, ResMed said it acquired oxygen therapy medical device company Inova Labs for an undisclosed amount.

The acquisition of Austin, Texas-based Inova Labs adds the LifeChoice Activox portable oxygen concentrator and Activox Duo2 fully-integrated oxygen concentrator system to ResMed’s portfolio of products, the company said.

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