ResMed Projects Strong EPS Growth Ahead of Q2 Earnings

ResMed Inc. anticipates an earnings per share of $2.29, a 21.8% increase from last year. With a solid growth trajectory, investors may see positive impacts on stock prices post-announcement.

Date: 04-01-2025

AI Rating: 7

Earnings Per Share (EPS)
Analysts expect ResMed to report an EPS of $2.29 for the fiscal Q2, representing a significant growth of 21.8% from $1.88 in the same quarter last year. Additionally, the projection for fiscal 2025 cites an EPS of $9.35, an upward trend of 21.1% from $7.72 in fiscal 2024. This demonstrates strong earnings potential and could positively impact investor sentiment and stock prices.

Revenue Growth
ResMed reported a revenue increase of 11.1% year-over-year to $1.2 billion in Q1 2025, exceeding consensus estimates. This robust revenue growth reinforces the company’s financial health and operational ability, suggesting a continued strong performance moving forward.

Profit Margins
The report highlights a 324-basis point annual gross margin expansion and a 432-basis point adjusted operating margin expansion year-over-year. This improvement in profit margins indicates operational effectiveness and could be a key factor in sustaining higher EPS in future quarters.

Market Performance
ResMed’s stock has rallied 33% over the past year, significantly outperforming the S&P 500 Index’s 23.7% gain. Such market dynamics usually reflect positive investor confidence, bolstered by the company’s strong earnings performance. Furthermore, the stock closed up over 7% following its Q1 earnings release, further signaling bullish sentiment.

Overall, the positive indicators regarding EPS growth, revenue increase, and improved profit margins suggest a favorable outlook for ResMed’s stock. Investors may view these factors as supportive of further price appreciation in anticipation of the upcoming earnings announcement.

Stocks: RMD