ResMed shares drop on Q4, FY2017 earnings release

Shares in ResMed (NYSE:RMD) fell today after the respiratory medical device maker posted 4th quarter and and fiscal year 2017 earnings that mostly came out on-top of Wall Street analyst’s expectations, but saw profits shrink nearly 3% compared to the previous year.

The San Diego, Calif.-based company posted profits of $101.6 million, or 70¢ per share, on sales of $555.7 million for the 3 months ended June 30, for bottom-line growth of 22.2% while sales grew 7.3% compared to the same period the previous year.

After adjusting to exclude 1-time items, earnings per share were 77¢, just ahead of the 75¢ consensus on Wall Street, where analysts were looking for sales of $555.7 million.

For the full fiscal year, ResMed saw profits of $342.3 million, or $2.40 per share, on sales of $2.1 billion, seeing profits shrink 2.9% while sales grew 12.4% compared to the previous fiscal year.

Adjusted to exclude 1-time items, earnings per share were $2.82, just ahead of the $2.80 consensus on Wall Street, where analysts were expecting to see revenues of $2.1 billion.

“We finished the year with solid constant currency revenue growth, fueled by sales of our devices, masks, and software-as-a-service revenue from Brightree. During the quarter, we made two acquisitions to augment our Brightree solutions, we presented and published results from clinical studies in sleep and COPD, and we launched two new products: AirTouch – the softest CPAP mask from ResMed; and AirMini – the world’s smallest CPAP. Our board of directors has declared a 6% increase in our dividend this quarter, reflecting confidence in our long-term outlook and 2020 strategy. We are positioned for another great year ahead, as we deliver products and solutions that improve patient outcomes, create efficiencies for our customers, lower overall healthcare system costs and deliver cash to our shareholders,” CEO Mick Farrell said in a press release.

Shares in ResMed have fallen 6.9% so far today, at $72.18 as of 11:47 a.m. EDT.

The post ResMed shares drop on Q4, FY2017 earnings release appeared first on MassDevice.

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