LONDON, UK / ACCESSWIRE / January 24, 2018 / Active-Investors.com has just released a free earnings report on ResMed Inc. (NYSE: RMD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=RMD. The Company reported its second quarter fiscal 2018 operating and financial results on January 22, 2018. The maker of medical products for respiratory disorders outperformed top- and bottom-line expectations, and also announced a quarterly dividend. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, ResMed most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the quarter ended December 31, 2017, ResMed's revenue grew 13% to $601.27 million compared to $530.40 million for Q2 FY17. The Company's revenue numbers beat analysts' estimates by $20.95 million.
During Q2 FY18, ResMed's revenue in United States, Canada, and Latin America, excluding Brightree, was $329.2 million; reflecting a 12% increase on a y-o-y basis. The Company's revenue for Brightree jumped 14% to $38.7 million on a y-o-y basis for the reported quarter. The Company's revenue in Europe, Asia, and other markets was $233.4 million, representing an increase of 8% on a constant currency basis compared to the year ago same period.
During Q2 FY18, ResMed's gross margin stood at 58.2%, lower than the gross margin of 58.3% in the prior year's comparable quarter, primarily due to declines in average selling prices. The Company's selling, general, and administrative expenses were $151.8 million for the reported quarter, reflecting a 9% increase over Q2 FY17. ResMed's selling, general, and administrative expenses (SG&A) improved to 25.2% of revenue in Q2 FY18 compared to 26.3% of revenue in Q2 FY17.
ResMed's research and development (R&D) expenses totaled $40.6 million, or 6.8% of revenue, for Q2 FY18, increasing 6% on a y-o-y basis. ResMed's income from operations soared 51% to $146.0 million on a y-o-y basis for the reported quarter, while non-GAAP income from operations was $157.3 million for Q2 FY18, reflecting a 20% increase on a y-o-y basis.
ResMed's net income came in at $9.53 million, or $0.07 per diluted share, in Q2 FY18 compared to a net income of $76.74 million, or $0.54 per diluted share, in Q2 FY17. The Company's non-GAAP net income, adjusted for amortization of acquired intangibles, impact of US tax reform, restructuring expenses, litigation settlement expenses, acquisition-related expenses, and the Astral battery field safety notification expenses, totaled $1.00 per diluted share; 37% higher compared to earnings of $0.73 per share in the year ago corresponding period.
Impact of US Tax Reform
On December 22, 2017, the Tax Cuts and Jobs Act, was enacted into law. ASC 740 Income Taxes requires companies to recognize the effect of any tax laws during the period in which they are enacted. Accordingly, ResMed performed preliminary calculations and, based on these, recognized additional income tax expenses of $126.6 million for the three and six months ended December 31, 2017.
Cash Matters
For the six months ended December 31, 2017, ResMed's net cash provided by operating activities totaled $226.53 million compared to $206.14 million for the year ago same period. During the reported quarter, the Company repurchased 100,000 shares at a cost of $8.5 million, as part of its ongoing capital management program.
On January 22, 2018, ResMed's Board of Directors declared a quarterly cash dividend of $0.35 per share. The dividend will have a record date of February 08, 2018, and will be payable on March 15, 2018.
Stock Performance Snapshot
January 23, 2018 - At Tuesday's closing bell, ResMed's stock surged 14.67%, ending the trading session at $100.35.
Volume traded for the day: 4.69 million shares, which was above the 3-month average volume of 635.49 thousand shares.
Stock performance in the last month - up 17.27%; previous three-month period - up 27.03%; past twelve-month period - up 57.78%; and year-to-date - up 18.49%
After yesterday's close, ResMed's market cap was at $14.26 billion.
Price to Earnings (P/E) ratio was at 40.66.
The stock has a dividend yield of 1.40%.
The stock is part of the Healthcare sector, categorized under the Medical Appliances & Equipment industry.
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