ResMed shares plunge on Q2 sales miss

Shares in ResMed (NYSE:RMD) fell nearly 20% after the respiratory-focused medical device maker missed sales expectations on Wall Street with its second quarter earnings results.

The San Diego-based company posted profits of $124.6 million, or 86¢ per share, on sales of $651.1 million for the three months ended December 31, for massive bottom-line growth of approximately 1208% while sales grew by a smaller 8.3% compared with the same period during the previous year.

Adjusted to exclude one-time items, earnings per share were $1, ahead of the 95¢ consensus on Wall Street where analysts expected to see sales of $672.9 million, which the company missed.

“We had a solid quarter with top-line growth and gross margin expansion, as well as continued fiscal discipline to drive leverage and improved operating profit. Our new AirFit F30 and AirFit N30i masks have been launched in many markets, and mask sales are growing well globally. During the quarter we further expanded our software and device ecosystems, through the acquisitions of MatrixCare and Propeller Health, to provide digital health solutions to millions more people worldwide. We are empowering people to live healthier and happier lives where they live, and we are doing this by providing innovative software, services, and solutions to improve outcomes, create efficiencies, and reduce overall healthcare system costs,” CEO Mick Farrell said in a press release.

Shares in ResMed fell 19.4% after the company released its earnings, closing last Friday at $94.56.

Earlier this month, ResMed said that it completed its $225 million acquisition of Propeller Health and its digital medicine platform.

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