In key news on Australian stocks, ResMed Inc. (NYSE:RMD) (AU:RMD) surged nearly 8% as of writing, driven by the company’s robust Q3 results for FY24. The company’s third-quarter performance reflected solid demand for sleep devices and robust expansion across its range of mask products.
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ResMed is a U.S.-based manufacturing company that provides medical devices for sleep apnea, chronic obstructive pulmonary disease (COPD), and various other chronic conditions. ResMed Australia operates as a subsidiary of ResMed Inc.
Snapshot of ResMed’s Q3 Results
ResMed’s revenue grew by 7% year-over-year to reach $1.2 billion on a constant currency basis. Regionally, revenue in the U.S., Canada, and Latin America grew by 9%, while Europe, Asia, and other markets experienced a 3% increase. Additionally, software-as-a-service revenue saw a notable 8% rise.
In addition to the increased revenue, the company achieved double-digit growth in operating profit, driven by enhanced margins resulting from continuous operational efficiencies. As a result, income from operations surged by 25% to $374.6 million. The gross margin expanded by 260 basis points to 57.9%.
Speaking of shareholders’ returns, ResMed announced a quarterly cash dividend of $0.48 per share for its U.S-listed shares. It’s important to note that for ResMed’s shares listed on the ASX, this dividend translates to $0.048. The dividend will be payable on June 13 and has a record date of May 9.
Is ResMed a Good Stock to Buy?
According to TipRanks’ consensus forecast, RMD stock has a Strong Buy rating, based on nine Buys and one Hold recommendation. The ResMed share price forecast is AU$33.20, which is 7% above the current trading level.
