Compared to Estimates, ResMed (RMD) Q3 Earnings: A Look at Key Metrics

ResMed (RMD) reported $1.2 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 7.2%. EPS of $2.13 for the same period compares to $1.68 a year ago.

The reported revenue represents a surprise of +1.90% over the Zacks Consensus Estimate of $1.17 billion. With the consensus EPS estimate being $1.92, the EPS surprise was +10.94%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how ResMed performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• U.S., Canada, and Latin America- Devices: $399.30 million compared to the $380.81 million average estimate based on four analysts. The reported number represents a change of +7.3% year over year.

• U.S., Canada, and Latin America- Masks: $288.20 million versus $281.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.1% change.

• Combined Europe, Asia, and other markets- Total Sleep and Respiratory Care: $361.60 million versus the four-analyst average estimate of $369.10 million. The reported number represents a year-over-year change of +3%.

• Combined Europe, Asia, and other markets- Devices: $238.90 million compared to the $243.48 million average estimate based on four analysts. The reported number represents a change of +1.3% year over year.

• Combined Europe, Asia, and other markets- Masks: $122.60 million versus the four-analyst average estimate of $125.63 million. The reported number represents a year-over-year change of +6.4%.

• U.S., Canada, and Latin America- Total: $687.50 million compared to the $662.30 million average estimate based on four analysts. The reported number represents a change of +9.3% year over year.

• Global revenue- Devices: $638.20 million versus the five-analyst average estimate of $621.03 million. The reported number represents a year-over-year change of +5%.

• Global revenue- Software as a Service: $148 million versus $148.81 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change.

• Global revenue- Total Sleep and Respiratory Care: $1.05 billion versus $1.03 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.

• Global revenue- Masks: $410.80 million versus the five-analyst average estimate of $407.49 million. The reported number represents a year-over-year change of +10.4%.

View all Key Company Metrics for ResMed here>>>

Shares of ResMed have returned -6.4% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ResMed Inc. (RMD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research