ResMed shares down as FY2018 earnings show shrinking profits

Shares in ResMed (NYSE:RMD) have fallen today after the medical device maker posted fourth quarter and full fiscal year 2018 earnings that topped expectations on the Street, but showed full year profits decline when compared to 2017.

The San Diego-based company posted profits of $109.8 million, or 76¢ per share, on sales of $623.6 million for the three months ended June 30, seeing bottom-line growth of 8.1% while sales grew 12% compared with the same period during the previous year.

After adjusting to exclude one-time items, earnings per share were 95¢, just in line with consensus on Wall Street where analysts expected to see sales of $623.2 million, which the company narrowly topped.

For the full year, ResMed posted profits of $315.6 million, or $2.19 per share, on sales of $2.3 billion, seeing the bottom line shrink 7.8% while sales grew 13.2% compared with the previous fiscal year.

Adjusted to exclude one-time items, earnings per share were $3.53, just ahead of the $3.50 consensus on Wall Street, where analysts expected to see sales of $2.3 billion, which the company topped.

“We closed out the year with strong performance across all aspects of our business, from solid top-line revenue growth—driven by geographically balanced results across our entire portfolio of offerings—to continued improvements in operating leverage, which has resulted in double-digit bottom-line growth. We continue to advance our cloud-connected medical device strategy and are growing our cloud-based software-as-a-service business. Our clinical studies and research efforts are being recognized and the opportunity to increase awareness of sleep-related breathing disorders and improve patient quality of life is bigger than ever. We believe we are well-positioned as we enter fiscal year 2019. We continue to innovate, we are improving our existing portfolio of products and offerings, and we have a robust pipeline to drive future growth,” CEO Mick Farrell said in a press release.

Shares in ResMed have fallen 4.1% so far today, at $104.17 as of 10:20 a.m. EDT.

Last month, ResMed and Google (NSDQ:GOOG) life sciences company Verily said they inked a new joint venture deal aiming to develop software solutions to improve diagnosis, treatment and care for sleep apnea and other breathing related sleep disorders.

The post ResMed shares down as FY2018 earnings show shrinking profits appeared first on MassDevice.

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