RMD Shares Down: Market Open before Recouping Grounds (ASX:RMD)

By ,

Shares in Resmed CDI [ASX:RMD] are down 0.6% at time of writing, slipping as investors digest the medtech’s fourth quarter results.

And despite the reaction, the figures themselves aren’t too bad.

However, the 40% increase in share price over the past six months clearly suggests investors are expecting growth. Signalling to us that perhaps there was an expectation of bigger gains across the balance sheet.

Let’s talk numbers though…

Double-digit revenue growth fails to satisfy the market

With $876.1 million in revenues for Q4, Resmed had something of a bumper quarter. Delivering a 10% improvement over Q3 on a constant currency basis.

More importantly, it represents a 14% increase of revenue year-on-year. Indicating that the company is making some great strides.

On top of this, net income (profit) was 10% higher year-on-year, climbing to $195.1 million for the quarter.

However, when it comes to their full 12-month performance, investors clearly had reason to be a little pessimistic. Net income for FY21 is likely to only reach $474.5 million; a 24% decline compared to the same time last year.

And while that didn’t stop Resmed from raising their dividend by 8%, it clearly wasn’t enough to tide over investors. At least, for today.

Despite all that, it is hard to deny the stellar year this stock has enjoyed.

As CEO Mick Farrell comments:

At this time of incredible demand for ResMed products, we are doing everything we can to increase our manufacturing of sleep and respiratory care devices. Our global team is supporting patients, providers, and physicians with our priority to get products directly into the hands of patients who need therapy most.

‘Looking ahead, we are confident in our ability to grow steadily through our fiscal year 2022 and to deliver for all our stakeholders. We’re driving accelerated adoption of digital health solutions in sleep apnea, COPD, and out-of-hospital care, accelerating our ResMed 2025 strategy. These digital health solutions provide efficiency and lower costs for providers and payers, as well as better quality-of-life and clinical outcomes for patients and physicians, and sustainable growth for all of our ResMed stakeholders.

So, at the very least, shareholders have to be happy about this outlook. Suggesting that this stock should continue to maintain the strong momentum that has carried it through 2021.

What’s next for Resmed Share Price?

As Farrell has noted, the focus for the company is simply getting more products to market. Because demand doesn’t really seem to be an issue.

So the faster they can churn out these devices, the more money Resmed is likely to bring in. And with their 2025 strategy in place, they’ve clearly got a plan to ensure they can make that happen.

Does that mean you should invest in this stock yourself though?

Well, only you can answer that question. But I don’t think today’s dip is big enough to warrant any real value buying opportunities.

You’d be better off looking into the technicals surrounding the chart. Which is something we can help with!

Our resident expert on trading, Murray Dawes, has put together a quick and easy run-through of his refined trading strategy. In particular, he utilises technical analysis tools to help navigate volatile stocks and consistently get the best results possible.

Check it out for yourself, for free, right here.


Ryan Clarkson-Ledward,
For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

Weekly ASX Market Wrap — WSA and SAR Top Movers Last Week

The previous week saw the ASX All Ordinaries [XAO] close at 6,011 points. The opening three days of the week saw trading move sideways before a drop on Thursday. Friday was a wild day of trading, with [XAO] eventually…

The ResMed Share Price Up on Results (ASX:RMD)

San Diego-based healthcare company ResMed Inc [ASX:RMD] has seen a 16% increase in year-over-year revenue to $769.5 million. The ResMed share price is up 5.47% to $24.68 at the time of writing…

ResMed Share Price Rises on Another Strong Quarter (ASX: RMD)

The ResMed share price added $2.70 to their price within the first hour of trading — a 14.5% spike. Shares of global health company ResMed Inc [ASX:RMD, NYSE:RMD] will pique investor interest today as they announce their Q1 FY 2020 results…

ResMed Shares Climb 10% with Strong Q3 Results

World-leading connected health company ResMed Inc [ASX:RMD] is a frontrunner in today’s trading, with their shares up 10.4% at time of writing, to $16.34 per share.

ResMed Share Price Hits another Record High Ahead of Quarterly Report

Shares in ResMed Inc [ASX:RMD] are now sitting steady at $16.55, rising 1.16% today. This week saw the medical specialist group hit a record high in its share price ahead of the release of their Q2 results for 2019 — due Friday, 25 January