ResMed Tanks on Second-Quarter Revenue Miss
ResMed Inc. (RMD) - Get Report dropped 19.4% by the close of trading on Friday after the medical device maker reported second-quarter revenue that missed analysts' expectations.
The San Diego company reported a 9% increase in adjusted revenue to $651.1 million but lagged Wall Street's expectations of $667 million. The company did beat on earnings, however, posting a profit of $1 a share vs. expectations of 94 cents.
"We had a solid quarter with top-line growth and gross margin expansion, as well as continued fiscal discipline to drive leverage and improved operating profit," said Mick Farrell, ResMed's CEO. "Our new AirFit F30 and AirFit N30i masks have been launched in many markets, and mask sales are growing well globally. During the quarter we further expanded our software and device ecosystems, through the acquisitions of MatrixCare and Propeller Health, to provide digital health solutions to millions more people worldwide.
Through the first half of the company's fiscal year, ResMed has posted an increase of 11% on adjusted revenue while earnings have gained 9%.
Separately, the company announced that its board declared a quarterly cash dividend of 37 cents per share, payable on March 14 to shareholders of record on Feb. 7.
The stock was up 3% year to date before Friday's selloff.
