Resmed Inc stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy RMD?
Resmed Inc's stock price fell by 5.01% as it crossed below the 20-day SMA, reflecting a challenging trading environment. The decline comes as the Nasdaq-100 and S&P 500 indices are down 1.67% and 1.29%, respectively, indicating broad market weakness. This market trend has likely influenced investor sentiment, leading to the stock's downward movement.
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Analyst Views on RMD
Wall Street analysts forecast RMD stock price to rise
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 255.820
Low
260.00
Averages
294.00
High
345.00
Current: 255.820
Low
260.00
Averages
294.00
High
345.00
About RMD
ResMed Inc. is a holding company. The Company, through its subsidiaries, in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Its segments include Sleep and Breathing Health segment and the Residential Care Software segment. It also operates a Software as a Service (SaaS) business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. Its products and solutions are designed to improve patients' quality of life and reduce the impact of chronic disease. Its cloud-based digital health software applications, along with its devices, are designed to provide connected care.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ResMed Price Target Raised to $302 by KeyBanc Following Strong Earnings
- Analyst Confidence Boost: KeyBanc Capital Markets raised ResMed's price target from $299 to $302 while maintaining an Overweight rating, reflecting increased confidence in the company's future performance.
- Earnings Beat Expectations: ResMed's Q2 fiscal 2026 revenue exceeded expectations, driven primarily by strong performance in the Masks & Accessories and Devices segments, offsetting underwhelming results from the Software as a Service (SaaS) segment.
- Gross Margin Guidance Raised: The company raised the low end of its gross margin guidance for fiscal 2026, indicating improving profitability expectations, with a current gross margin of 60.69%, which further boosts investor confidence.
- Strong Market Performance: RBC Capital Markets increased ResMed's price target from $311 to $314, highlighting double-digit revenue and earnings growth across markets, while maintaining an Outperform rating, indicating a positive outlook for shareholder returns.
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- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable technical insights for investors, helping to assess price trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are actually buying and selling 'units' that can be created or destroyed based on demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in outstanding shares for ETFs focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on the underlying assets.
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- Significant Sales Growth: Quarterly sales rose 11% year-over-year to $1.42 billion, surpassing the consensus of $1.396 billion, reflecting strong demand for sleep devices and accessories.
- Smart Comfort Device Approval: The FDA cleared ResMed's Personalized Therapy Comfort Settings (PTCS) for marketing as Smart Comfort, set to launch in early 2026, showcasing the company's innovation in obstructive sleep apnea treatment.
- Margin Improvement: Gross margin increased by 320 basis points to 61.8%, driven by manufacturing and logistics efficiencies, highlighting successful cost management strategies.
See More
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- Earnings Beat: ResMed reported an 11% year-over-year sales increase, surpassing analyst expectations, indicating strong performance and sustained demand in the medical device market.
- Margin Expansion: The growth in sales has led to improved profit margins, which not only enhances the company's financial health but also provides additional funding for future investments and R&D initiatives.
- Analyst Support: Despite competitive pressures, analysts remain optimistic about ResMed's long-term growth prospects, raising price targets, which reflects market confidence in its business model.
- Competitive Landscape: In the context of increasing competition, ResMed's ongoing growth and profitability will be crucial for maintaining its leading position in the industry, particularly through investments in innovation and product development.
See More
ResMed Declares Quarterly Dividend of $0.60 per Share
- Quarterly Dividend Announcement: ResMed has declared a quarterly dividend of $0.60 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 0.93% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Payment Schedule: The dividend is set to be paid on March 19, with a record date of February 12 and an ex-dividend date also on February 12, providing investors with a clear timeline to inform their investment decisions.
- Financial Outlook: In the upcoming Q2 2026 earnings report, ResMed is targeting a gross margin of 62%-63%, alongside double-digit growth in key segments, showcasing the company's strong performance in the market and future growth potential.
See More
ResMed Reports Strong Q2 2026 Earnings with 11% Revenue Growth
- Significant Revenue Growth: ResMed reported total revenue of $1.42 billion for Q2, reflecting an 11% year-over-year increase and 9% growth in constant currency, showcasing strong performance across its device and mask portfolio, thereby reinforcing its leadership in the medical device market.
- Margin Improvement: The company's gross margin reached 32.3% in the December quarter, up 110 basis points year-over-year, with operating profit increasing by 19%, which not only reflects successful cost control but also lays a solid foundation for future profitability.
- Innovative Product Launch: ResMed introduced the F30i Comfort and F30i Clear mask ranges, described as the first compact full-face fabric masks, expected to attract more customers and enhance market share, further driving the company's technological leadership in respiratory therapy.
- Increased Shareholder Returns: In Q2, ResMed returned $263 million to shareholders, including a quarterly dividend of $0.60 per share and $175 million in share repurchases, demonstrating the company's commitment to creating value for shareholders while sustaining growth.
See More
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- Analyst Confidence Boost: KeyBanc Capital Markets raised ResMed's price target from $299 to $302 while maintaining an Overweight rating, reflecting increased confidence in the company's future performance.
- Earnings Beat Expectations: ResMed's Q2 fiscal 2026 revenue exceeded expectations, driven primarily by strong performance in the Masks & Accessories and Devices segments, offsetting underwhelming results from the Software as a Service (SaaS) segment.
- Gross Margin Guidance Raised: The company raised the low end of its gross margin guidance for fiscal 2026, indicating improving profitability expectations, with a current gross margin of 60.69%, which further boosts investor confidence.
- Strong Market Performance: RBC Capital Markets increased ResMed's price target from $311 to $314, highlighting double-digit revenue and earnings growth across markets, while maintaining an Outperform rating, indicating a positive outlook for shareholder returns.
See More
XOVR Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: XOVR's 52-week low is $13.9246 per share, with a high of $21.78, while the latest trade price stands at $17.39, indicating price volatility within this range that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average can provide valuable technical insights for investors, helping to assess price trends and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are actually buying and selling 'units' that can be created or destroyed based on demand, impacting the liquidity and market performance of the ETF.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in outstanding shares for ETFs focuses on those experiencing notable inflows (new units created) or outflows (old units destroyed), assessing their impact on the underlying assets.
See More
ResMed Q2 Earnings Beat Expectations with Strong Sales Growth
- Earnings Beat: ResMed reported adjusted earnings of $2.81 for Q2 FY2026, exceeding the consensus estimate of $2.72, indicating a robust performance in profitability.
- Significant Sales Growth: Quarterly sales rose 11% year-over-year to $1.42 billion, surpassing the consensus of $1.396 billion, reflecting strong demand for sleep devices and accessories.
- Smart Comfort Device Approval: The FDA cleared ResMed's Personalized Therapy Comfort Settings (PTCS) for marketing as Smart Comfort, set to launch in early 2026, showcasing the company's innovation in obstructive sleep apnea treatment.
- Margin Improvement: Gross margin increased by 320 basis points to 61.8%, driven by manufacturing and logistics efficiencies, highlighting successful cost management strategies.
See More
ResMed Surpasses Earnings and Revenue Estimates with Growth Outlook
- Earnings Beat: ResMed reported an 11% year-over-year sales increase, surpassing analyst expectations, indicating strong performance and sustained demand in the medical device market.
- Margin Expansion: The growth in sales has led to improved profit margins, which not only enhances the company's financial health but also provides additional funding for future investments and R&D initiatives.
- Analyst Support: Despite competitive pressures, analysts remain optimistic about ResMed's long-term growth prospects, raising price targets, which reflects market confidence in its business model.
- Competitive Landscape: In the context of increasing competition, ResMed's ongoing growth and profitability will be crucial for maintaining its leading position in the industry, particularly through investments in innovation and product development.
See More
ResMed Declares Quarterly Dividend of $0.60 per Share
- Quarterly Dividend Announcement: ResMed has declared a quarterly dividend of $0.60 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 0.93% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Payment Schedule: The dividend is set to be paid on March 19, with a record date of February 12 and an ex-dividend date also on February 12, providing investors with a clear timeline to inform their investment decisions.
- Financial Outlook: In the upcoming Q2 2026 earnings report, ResMed is targeting a gross margin of 62%-63%, alongside double-digit growth in key segments, showcasing the company's strong performance in the market and future growth potential.
See More
ResMed Reports Strong Q2 2026 Earnings with 11% Revenue Growth
- Significant Revenue Growth: ResMed reported total revenue of $1.42 billion for Q2, reflecting an 11% year-over-year increase and 9% growth in constant currency, showcasing strong performance across its device and mask portfolio, thereby reinforcing its leadership in the medical device market.
- Margin Improvement: The company's gross margin reached 32.3% in the December quarter, up 110 basis points year-over-year, with operating profit increasing by 19%, which not only reflects successful cost control but also lays a solid foundation for future profitability.
- Innovative Product Launch: ResMed introduced the F30i Comfort and F30i Clear mask ranges, described as the first compact full-face fabric masks, expected to attract more customers and enhance market share, further driving the company's technological leadership in respiratory therapy.
- Increased Shareholder Returns: In Q2, ResMed returned $263 million to shareholders, including a quarterly dividend of $0.60 per share and $175 million in share repurchases, demonstrating the company's commitment to creating value for shareholders while sustaining growth.
See More
