NYSE$RMD

ResMed Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

ResMed's Q4 2020 earnings were announced, with revenue increasing by 9% and non-GAAP operating profit up by 24%.

ResMed Inc. reported a 9% increase in revenue to $770.3 million for the fourth quarter of fiscal year 2020. Non-GAAP diluted earnings per share were $1.33, a 40% increase compared to the prior year period. The company saw strong sales across its mask product portfolio and increased demand for ventilators due to COVID-19.

  • Revenue increased by 9% to $770.3 million, or 10% on a constant currency basis.
  • GAAP diluted earnings per share were $1.22, while non-GAAP diluted earnings per share reached $1.33.
  • Net operating profit increased by 84%, with non-GAAP operating profit up by 24%.
  • The company supported the COVID-19 pandemic response through increased manufacturing of ventilators and ventilation mask systems.

Headline financials

Total Revenue

$770M

Previous: $705M+9.3%
EPS (adj)

$1.33

Previous: $0.95+40.0%
Gross margin

58.3%

No prior period
Non-GAAP gross margin

59.9%

No prior period
Capital Expenditures

$18M

Previous: $22.2M-19.1%
Free Cash Flow

$312M

Previous: $120M+161.1%
Net Income

$178M

Previous: $68.8M+158.5%
Operating Income

$223M

Previous: $121M+84.4%
Gross Profit

$449M

Previous: $418M+7.5%
Cash & Equivalents

$463M

Previous: $147M+214.8%
Total Assets

$4.59B

Previous: $4.11B+11.7%
Stock-Based Comp

$16.1M

Previous: $14.2M+13.5%

Revenue & EPS history

ResMed · Revenue · Quarterly

$770M

Q4 2020+9.3%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

ResMed · $770M total across 3 segments · Q4 2020

  • Total Devices
    $412M
  • Total Masks and other
    $267M
  • Residential Care Software
    $91.5M

Forward guidance

ResMed is confident in its ability to navigate through the ongoing challenging clinical and economic environment to deliver for all stakeholders. Sleep labs and physician practices are reopening across many geographies, and the company is seeing accelerated adoption of digital health solutions which supports its long-term strategy.

Tailwinds

  • Sleep labs and physician practices are reopening across many geographies.
  • Accelerated adoption of digital health solutions.
  • Strong foundation to accelerate growth over the longer term.
  • Increased manufacturing of ventilators.
  • Supporting customers with digital health solutions.

Headwinds

  • Ongoing challenging clinical and economic environment.
  • Uncertain environment.
  • Declines in manufacturing and procurement efficiencies driven by higher air freight costs.
  • Impact of legal settlement expenses in the prior year.
  • COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.2%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+18.7%

Q3 2024

Best reaction

-19.3%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-2.9%-2.0%-10.8%
Q2 2026-1.5%+2.1%-0.5%
Q1 2026-1.5%-2.8%+1.4%
Q3 2025+10.1%+10.9%+13.2%
Q2 2025-8.3%-5.8%-9.4%
Q1 2025+7.9%+2.9%+2.7%
Q4 2024+4.9%+2.6%+14.9%
Q3 2024+18.7%+16.4%+16.0%
Q2 2024+6.5%+9.3%+5.2%
Q1 2024-4.2%+0.5%+9.5%
Q4 2023-19.3%-19.3%-28.3%
Q3 2023+7.6%+5.4%-3.8%
Q2 2023-2.8%-1.2%-8.5%
Q1 2023-6.5%-5.6%-1.7%
Q4 2022-1.5%-3.1%-3.1%
Q3 2022-6.9%-8.5%-3.0%
Q2 2022-6.5%+0.5%+6.2%
Q1 2022-1.9%-2.1%-6.3%
Q4 2021+0.5%+0.7%+8.3%
Q3 2021-10.6%-8.6%-2.0%
Q2 2021-5.8%-3.5%-9.9%
Q1 2021+6.2%+12.1%+16.0%
Q4 2020-13.4%-13.6%-14.4%
Q3 2020+1.8%+2.0%+2.9%
Q2 2020-4.1%+0.6%-4.1%
Q1 2020+13.8%+15.7%+14.6%
Q4 2019+1.1%+3.8%+5.4%
Q3 2019+7.9%+7.6%+9.3%
Q2 2019-19.3%-21.5%-13.6%
Q1 2019+6.2%+7.3%+5.7%
Q4 2018-2.1%+0.7%+4.1%
Q3 2018-2.1%-1.4%+6.9%
Q2 2018+13.2%+15.9%+5.1%
Q1 2018+7.7%+7.4%+8.6%
Q4 2017-6.0%-2.6%+0.6%
Q3 2017-5.2%-2.7%-2.3%
Q2 2017+9.5%+7.1%+13.7%
Q1 2017-5.0%-5.3%-8.7%
Q4 2016+5.8%+6.5%+6.0%
Q3 2016-7.4%
Q2 2016+7.1%
Q1 2016+0.1%
Q4 2015+3.6%
Q3 2015-10.3%
Q2 2015+8.6%
Q1 2015+9.5%
Q4 2014-4.1%
Q3 2014-0.4%
Q2 2014-5.7%
Q1 2014-13.2%
Q4 2013+0.5%
Q3 2013+0.9%
Q2 2013+7.0%
Q1 2013-4.7%
Q4 2012+12.8%
Q3 2012+7.6%
Q2 2012+9.7%
Q1 2012-12.0%
Q4 2009-5.4%
Q4 2011-5.4%
Q3 2011-0.9%
Q3 2010-0.9%
Q2 2010+2.2%
Q2 2011+2.2%
Q1 2010+3.6%
Q1 2011+3.6%
Q4 2010+3.6%

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