雅虎香港財經 ResMed Inc (RMD) Q3 2024 Earnings Call Transcript Highlights: Strong Financial Performance and ...
Group Revenue: $1.2 billion, a 7% increase year-over-year.
Net Income: Increased by 27%.
Non-GAAP Diluted EPS: Increased by 27%.
Gross Margin: Increased by 240 basis points to 58.5%.
Operating Profit: Increased by 23%.
Software as a Service Revenue: Grew by 8%.
Device Sales: Increased globally by 5%.
Masks and Accessories Business: Achieved 10% growth year-over-year.
Cash Flow from Operations: $402 million.
Capital Expenditure: $21 million.
Dividend: Quarterly dividend declared at $0.48 per share.
Share Buyback: Purchased 261,000 shares for $50 million.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the sustainability of the gross margin recovery into the fourth quarter and into 2025? A: Michael J. Farrell - ResMed Inc. - CEO & Chairman: The gross margin recovery has been supported by long-term programs, including the launch of the AirSense 11 platform and new masks like the F40, which have better cost and price points. Short-term improvements have also been achieved by managing inventory with higher freight costs from past supply chain issues. For Q4, there will be a slight moderation due to Red Sea impacts, but the focus remains on improving gross margin throughout FY '25.
Q: How much of the 240 basis point improvement in core gross margin was due to freight and manufacturing improvements? A: Brett A. Sandercock - ResMed Inc. - CFO: The major contributors to the 240 basis point improvement were reductions in freight costs and manufacturing cost improvements, with both factors being significant on their own.
Q: Are you seeing any impact from competitor activities in rest of world markets, particularly with backlogs at home care companies? A: Michael J. Farrell - ResMed Inc. - CEO & Chairman: No significant impacts from competitors returning to the market have been observed. The company has maintained or grown its market share across all regions, with strong execution by supply chain and commercial teams.
: Can you provide insights into current trends for new patient starts in the U.S., particularly in relation to home sleep testing versus PSG? A: Michael J. Farrell - ResMed Inc. - CEO & Chairman: New patient starts are strong, with a steady flow of patients entering the channel. The market is returning to a steady state post-COVID and supply chain disruptions. There is significant potential for further growth in new patient starts and resupply, particularly with increasing use of home sleep testing.
Q: How are GLP-1 treatments impacting patient starts on PAP therapy? A: Michael J. Farrell - ResMed Inc. - CEO & Chairman: Treatments with GLP-1s are showing a 10.5% higher propensity for patients to start PAP therapy compared to those not on the medication. This indicates a significant tailwind for ResMed, as these treatments bring more patients into the healthcare system who are then likely to adopt PAP therapy.
Q: What is the expected impact of Philips exiting the noninvasive ventilation market on ResMeds market share? A: Michael J. Farrell - ResMed Inc. - CEO & Chairman: The exit of Philips from the noninvasive ventilation market in the U.S. presents an opportunity for ResMed to potentially increase its market share. However, the supply of ventilators is currently high due to past sales during the COVID-19 pandemic, so the immediate impact may be limited. ResMed remains focused on providing leading solutions in this space.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
