ResMed IncRMD
▼ NegativeCapitalrelevance
Operating margin fell to 30.7% from 33.7%, with higher R&D and supply chain costs, plus a $42M charge for Astral field safety action.
Impact on stocks 1
Cloud & Digital Infrastructure
ResMed IncResMed reported second-quarter revenue of $1.46 billion, in line with analyst estimates and up 8.6% year over year, but its operating margin fell to 30.7% from 33.7% a year earlier, prompting a negative market reaction. Management attributed the margin compression to higher R&D and supply chain costs amid inflation, and the company took a $42 million charge for a field safety action on its Astral devices, with future Astral sales suspended for now. Adjusted EPS of $2.95 beat analyst estimates of $2.89. During the earnings call, analysts questioned management about gross margin drivers, guidance range, acquisition strategy focused on tuck-in deals of $100 million to $500 million, the Astral charge, and the impact of oral GLP-1s on new patient funnel dynamics.
ResMed IncOperating margin fell to 30.7% from 33.7%, with higher R&D and supply chain costs, plus a $42M charge for Astral field safety action.