Stock of the day: ResMed
ResMed secures US tariff exemptions and reports 8% revenue growth to $1.3 billion while doubling California manufacturing capacity.
(AI video summary)
This video was created on 24 April for IG audiences by ausbiz.
ASX code: RMD
ResMed's tariff exemption boosts outlook
ResMed has received exemption from United States (US) trade tariffs for its exports from manufacturing facilities in Australia and Singapore. Chief Executive Officer (CEO) Mick Farrell acknowledges uncertainties under the current US administration, prompting the company to double its California manufacturing footprint to manage geopolitical risks.
Strong quarterly performance
- Quarterly revenue increased 8% to $1.3 billion, driven by demand for sleep devices and masks, plus growth in residential care software
- Gross margin improved by 140 basis points (bps) to 59.3%
- Operating income rose 14%, posting $579 million in operating cash flow,
- Diluted earnings per share (EPS) of $2.48, paying $78 million in dividends
ResMed shares have risen in morning trading following this report.
Investment perspective
Analysts view ResMed as a quality growth company with strong management, demonstrated by 9% constant currency revenue growth and expanding margins.
Some investors maintain current positions due to recent share price appreciation, while others see opportunities to increase holdings. The company's adaptability and innovation pipeline make it an attractive long-term investment.
Analysts consider potential tariff impacts as temporary, likely to be overshadowed by broader US fiscal challenges.
News and trade ideas
Gold
-
The trade: US Tech 100 rebounds as Australia 200 holds firm
IG's Tony Sycamore analyses the US Tech 100 and ASX 200 as markets react to earnings and eased US-China trade tensions.Forex -
-
-
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Explore the markets with our free course
Discover and learn how the range of markets you can trade on with IG Academy's online course – ‘Introducing the financial markets’.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade on over 10,000 popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
