Post Earnings Coverage as ResMed Revenue Increased 17%
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Upcoming AWS Coverage on Edwards Lifesciences Post-Earnings Results
LONDON, UK / ACCESSWIRE / January 30, 2017 / Active Wall St. announces its post-earnings coverage on ResMed Inc. (NYSE: RMD). The Company disclosed its second quarter fiscal 2017 financial results on January 23, 2017. The developer of treatments for sleep-disorder breathing reported a top- and bottom-line beat. Register with us now for your free membership at:
One of ResMed's competitors within the Medical Appliances & Equipment space, Edwards Lifesciences Corp. (NYSE: EW), announced on January 17, 2017, its operating results for the quarter ended December 31, 2016, after the market closes on Wednesday, February 01, 2017, and will host a conference call at 5:00 p.m. ET that day to discuss those results. AWS will be initiating a research report on Edwards Lifesciences in the coming days.
Today, AWS is promoting its earnings coverage on RMD; touching on EW. Get our free coverage by signing up to:
For its quarter ended December 31, 2016, ResMed reported revenue of $530.4 million, a 17% increase compared to the same period of the prior year. Excluding the contribution from the Brightree business acquired in April 2016, the Company's revenue for the reported quarter was $496.6 million, up by 9%. The reported figure surpassed analysts' consensus estimates of $522 million.
ResMed's gross margin in Q2 FY17 was 58.3%, which was higher than the prior year's quarter gross margin of 58.1%. The improvement in gross margin was attributed to manufacturing and procurement efficiencies and an incremental contribution from the Brightree acquisition, partly offset by changes in product mix and declines in average selling prices. The Company's income from operations for Q2 FY17 was $96.9 million, down 10% compared with the quarter ended December 31, 2015. Non-GAAP income from operations for the reported quarter was $131.6 million, a 13% increase on a y-o-y basis.
ResMed's net income for Q2 FY17 totaled $76.7 million, down 20% compared to the same period last year. GAAP diluted earnings per share for the reported quarter decreased 21% to $0.54. Earnings, adjusted for costs related to mergers and acquisitions and amortization costs was $103.3 million, up 1% on a y-o-y basis, while on per share basis it totaled $0.73 per share, consistent with the same period of the prior year. ResMed's adjusted earnings figure topped Wall Street's expectations of $0.70 per share.
Segment Results:
On a geographical basis, ResMed's Q2 FY17 revenue in the Americas was $326.8 million, a 21% increase over the same period of the prior year. This included Brightree's revenue of $33.8 million. Excluding Brightree, revenue in the Americas totaled $293.0 million, up 9% on a y-o-y basis. Revenue in combined EMEA and APAC was $203.6 million, an increase of 13% on a constant currency basis compared to the same period of the prior year.
Globally, in constant currency terms, ResMed's device sales increased by 17% in Q2 FY17, while masks and other increased by 2% over the prior year comparable quarter. ResMed's Americas device sales were $154.3 million, an increase of 13% on a y-o-y basis. Masks and other sales were $138.6 million, an increase of 4% over Q2 FY16. Device sales in combined EMEA and Asia/Pacific were $146.7 million, an increase of 21% on a constant currency basis compared to the same period of the prior year. Masks and other sales in the region were $57 million, down 7% over prior year's corresponding quarter, or in constant currency terms, a decrease of 4%.
Balance Sheet & Cash Flow:
For Q2 FY17, ResMed generated operating cash flow of $119.9 million. The Company's capital expenditure for the reported quarter was $14.7 million. Depreciation and amortization for Q2 FY17 totaled $27.7 million. As of December 31, 2016, ResMed had approximately $1.2 billion in gross debt and $318 million in net debt. The Company's total assets as of December 31, 2016, were $3.3 billion and net equity was $1.7 billion. The ResMed's board of directors declared a quarterly cash dividend of $0.33 per share. The dividend will have a record date of February 09, 2017, payable on March 16, 2017.
Stock Performance:
At the close of trading session on January 27, 2017, ResMed's stock price slightly declined 0.37% to end the day at $68.14. A total volume of 682.40 thousand shares were exchanged during the session. The Company's share price has gained 23.69% in the past twelve months and 9.81% on a YTD basis. The stock currently has a market cap of $9.59 billion. The Company's shares are trading at a PE ratio of 27.71 and have a dividend yield of 1.94%.
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