Needham analyst Michael Matson maintained a Hold rating on Resmed Inc (RMD) yesterday. The company’s shares closed yesterday at $117.30, close to its 52-week high of $118.50.
Matson said:
“RMD’s revenue missed while EPS beat consensus in F2Q19 due to a lower than expected tax rate. Revenue growth slowed to 5% CC organic in F2Q19 vs. 12% CC organic in F1Q19 due mainly to slower international flow generator growth as France and Japan completed their connected device upgrades. RMD’s software acquisitions, efficiency, and mix overcame pricing and its gross margin improved by 90 bps Y/Y while its operating margin (including amortization) improved by 80 bps Y/Y. Since RMD expects the slower international flow generator growth to continue for the next few quarters, we have lowered our organic growth estimates to the mid-single digits. Given the slower organic revenue growth (5%) and only modest EPS growth (2%) we now expect in CY19 combined with RMD’s premium valuation, we maintain our Hold rating.”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.8% and a 62.7% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Currently, the analyst consensus on Resmed Inc is a Moderate Buy with an average price target of $103.50.
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Based on Resmed Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $106 million. In comparison, last year the company had a net profit of $9.53 million.
Based on the recent corporate insider activity of 109 insiders, corporate insider sentiment is negative on the stock.
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ResMed, Inc. engages in the development, manufacturing, distribution, and marketing of medical equipment and software solutions. Its product portfolio includes devices, diagnostic products, mask systems, headgear and other accessories, and dental devices. The company was founded by Peter C. Farrell in June 1989 and is headquartered in San Diego, CA.
