ResMed beats quarterly profit estimates on strong demand for its sleep apnea devices
Oct 24 (Reuters) -ResMed RMD.N beat Wall Street estimates for quarterly profit on Thursday, driven by strong demand for its devices used for sleep apnea treatment.
Shares of the company rose about 4% in after-hours trading.
The San Diego, California-basedcompany posted adjusted profit of $2.20 per share for the quarter ended September 30, beating estimates of $2.04per share.
ResMed makes continuous and bilateral positive airway pressure machines for non-invasive treatment of sleep apnea - a condition in which the airway gets blocked multiple times while sleeping.
The medical device maker's first quarter revenue for the fiscal year 2025 rose 11% to $1.22 billion, compared to analysts' estimates of $1.18 billion, according to data compiled by LSEG.
The revenue growth was driven by increased demand for its sleep devices and masks portfolio, the company said.
Some analysts expect significant risk of disruption in patient demand for ResMed's sleep apnea products next year, as the U.S. Food and Drug Administration is likely to approve Eli Lilly's LLY.N weight-loss drug Zepbound for sleep apnea by the end of 2024. The company, however, had previously shrugged off such concerns.
Reporting by Sriparna Roy in Bengaluru and Sneha S K; Editing by Mohammed Safi Shamsi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
