ResMed revenue up 16% as it boosts production amid CPAP shortages

ResMed (NYSE: RMD, ASX: RMD) reported Street-beating Q2 results as it boosted production to meet the demand created by Philips’ massive respiratory device recall.

The San Diego–based maker of CPAPs and other respiratory devices earned $224.9 million, or $1.53 per share, off nearly $1.034 billion in revenue for the quarter that ended Dec. 31, 2022. The results represented a bottom-line gain of 11% and a top-line gain of 16%.

Adjusted to exclude one-time items, ResMed earned $1.66 per share. The results came in 4¢ ahead of The Street, where analysts expected adjusted EPS of $1.62 off $1 billion in revenue.

ResMed CEO Mick Farrell said earlier this month that the opening of a massive new plant in Singapore brought ResMed closer to catching up with skyrocketing CPAP demand.

Medtech giant Philips has been out of the market for more than 18 months as it grapples with a recall involving 5.5 million CPAP and BiPAP ventilators and other respiratory devices. (Here’s a full timeline of the Philips recall.)

ResMed has faced supply chain challenges as it has sought to meet the huge demand created by its competitor’s recall. But Farrell told analysts this evening: “We see the supply environment improving every week, every month, and every quarter, and our access to the specific electronic components we need has increased.”

Farrell went on: “We are confident in our ability to fulfill all customer demand before the end of calendar year 2023, and we expect to see steady ongoing incremental device revenue growth in the third and fourth quarters of our fiscal year 2023.”

Investors reacted by sending RMD shares up more than 2% to $237.50 apiece in after-hours trading.

ResMed’s Farrell is becoming board chair

Also today, ResMed announced that Mick Farrell will take over for his father, Peter Farrell, as chair of the company’s board of directors.

“I am honored to expand my role with ResMed as its next chair and to succeed my dad, Peter Farrell, whose vision, leadership, and guidance have helped ResMed become the largest outside-hospital, digital health company in the world,” Mick Farrell said.

Original Article: (https://www.massdevice.com/resmed-revenue-up-16-boosts-production/)