ResMed Inc. Announces Impressive Fourth Quarter and Full Year 2024 Financial Results
RMD (RMD) Share Update August 2024 Thursday 1st
ResMed Inc. Reports Strong Fourth Quarter and Full Year 2024 Financial Results
ResMed Inc. (NYSE: RMD, ASX: RMD) has released its financial results for the fourth quarter and full fiscal year ending June 30, 2024, showcasing significant growth in revenue and operating profit.
Instant Summary:
- Fourth-quarter revenue increased by 9% to $1.2 billion.
- Operating profit for the quarter rose by 38%.
- Non-GAAP operating profit increased by 30%.
- Quarterly dividend increased by 10% to $0.53 per share.
- Full-year revenue grew by 11% to $4.7 billion.
- Full-year operating profit increased by 17%, with non-GAAP operating profit up by 21%.
Fourth Quarter 2024 Highlights
ResMed Inc. reported a 9% increase in revenue for the fourth quarter of fiscal year 2024, reaching $1.2 billion. On a constant currency basis, revenue grew by 10%. The company's gross margin improved by 350 basis points to 58.5%, with a non-GAAP gross margin of 59.1%.
Income from operations saw a significant rise of 38%, while non-GAAP income from operations increased by 30%. The company generated an operating cash flow of $440 million and repaid $300 million in debt. Diluted earnings per share for the quarter were $1.98, with non-GAAP diluted earnings per share at $2.08.
Full Year 2024 Highlights
For the full fiscal year 2024, ResMed's revenue increased by 11% to $4.7 billion. The gross margin improved by 90 basis points to 56.7%, and non-GAAP gross margin improved by 120 basis points to 57.7%. Income from operations rose by 17%, with non-GAAP income from operations up by 21%.
The company reported an operating cash flow of $1.4 billion and debt repayments totaling $0.8 billion. Diluted earnings per share for the full year were $6.92, with non-GAAP diluted earnings per share at $7.72.
CEO's Remarks
Mick Farrell, Chairman & CEO of ResMed, commented on the results, stating, 'Our fourth quarter and full-year fiscal year 2024 results demonstrate strong performance across all sectors of our business. Ongoing patient and customer demand for our best-in-class products and software solutions is incredibly strong, driving solid growth across our devices, masks, and software businesses.'
Farrell also highlighted the company's focus on operating excellence, cost discipline, and profitable growth acceleration, which resulted in gross margin expansion and double-digit growth in bottom-line profitability.
Market Position and Future Outlook
ResMed is well-positioned as a market leader in the sleep health and breathing disorders sector, with nearly 2.5 billion people suffering from such conditions. The company aims to increase market penetration and demand generation while expanding access to therapies through virtual pathways.
The strong financial performance reported by ResMed is likely to have a positive impact on its stock price. The significant increases in revenue, operating profit, and earnings per share demonstrate the company's robust growth and operational efficiency. The increase in the quarterly dividend also reflects confidence in future cash flows, which is likely to be well-received by investors.
Investor Reaction:
Analysts are expected to react positively to ResMed's financial results, given the impressive growth figures and the company's strategic focus on expanding market penetration. The increase in dividends further signals strong financial health, which should bolster investor confidence.
Conclusion:
Investors should consider ResMed's strong financial performance and strategic growth initiatives when evaluating their portfolios. The company's leadership in the sleep health and breathing disorders market, coupled with its commitment to operational excellence, positions it well for continued growth. Stay tuned for further updates and insights from ResMed's upcoming Investor Day on September 30, 2024.