- ASX200 member ResMed Inc is set to announce its results for the 1st quarter of FY2021 on 29 October 2020.
- The US-headquartered medical equipment player is working with various stakeholders to deliver ventilation therapy for the treatment of respiratory complications associated with the COVID-19.
- The ongoing impact of COVID-19 and its anticipated resurgence may create considerable demand for the ResMed’s ventilator products.
- Further, with sleep disorders diagnosis rate predicted to go up, ResMed could witness significant growth potential in the market.
ASX 200 healthcare player ResMed Inc (ASX:RMD, NYSE:RMD) is likely to release its Q1 FY2021 financial results on 29 October 2020, according to an ASX announcement dated 8 October. The results will be announced after the trading session ends on the New York Stock Exchange.
Let us delve deep and discuss more about ResMed-
ResMed Inc is engaged in developing innovative solutions for treating and keeping individuals out of the hospital. The Company is empowering people to live healthier and high-quality lives.
ResMed’s digital health tech, along with cloud-connected medical tools, provides care to the individuals with diseases including COPD, and sleep apnea, among others.
Moreover, the broad out-of-hospital software platforms of RMD provides support to the professionals and caregivers who help individuals to stay healthy. By offering better care, the Company enhance the quality of life, decrease the impact of chronic illness, and lower the costs for consumers and healthcare systems. The Company has its operations in over 140 countries.
ResMed to release its Earnings on 29 October 2020
On 8 October 2020, ResMed disclosed that it would release its financial and operational results for the first quarter of the financial year 2020 on 29 October 2020 after closing of the NYSE.
After the release of the results, the management will host a webcast for the discussion of these results.
Respiratory Care and ResMed
In March 2020, the WHO declared COVID-19 as a pandemic, and since then the Company has observed increased requirement of its ventilator devices as well as masks.
Moreover, the Company is working with health authorities, hospitals, physicians, governments, along with patients across the world to assess their needs, and to deliver the ventilation therapy that is important for the treatment of the respiratory complications associated with the COVID-19.
ResMed is working with the main focus of increasing the accessibility of its ventilators as well as other respiratory support devices for the patients who require them most.
Briefing Business Strategy of ResMed, Continued Impact of COVID-19 may create more demand for ResMed’s ventilator products
ResMed stated that sleep apnea and respiratory care markets are predicted to grow in the future because of several factors. Some of these factors include-
- Increasing awareness of OSA, COPD, and CSA.
- Improved understanding of the role of treatment of sleep apnea as well as in the managing neurologic, metabolic, cardiac, and some other related conditions.
- Improved knowledge of the role of non-invasive ventilation for COPD management.
- An increase in the use of digital as well as product technology for better patient outcomes and generate efficiencies for customers and providers.
- Furthermore, the continued effect of COVID-19 or its resurgence may create more demand for the ventilator products of ResMed.
ResMed’s Financial Year 2020 Highlights
Highlights from the financial front-
- During the financial year 2020, the revenue of RMD rose by 13% to US$3.0 billion; up 15% on constant currency (cc) basis.
- For Q4 FY2020, revenue was up 9% to US$770.3 million (+10% on cc basis).
- GAAP gross margin was 58.1%, and non-GAAP gross margin expanded 80 bps to 59.8%.
- Net operating profit during the period rose by 40% and non-GAAP operating profit increased by 24%.
- In the fiscal year 2020, ResMed had GAAP diluted earnings per share of US$4.27; non-GAAP diluted earnings per share were US$4.76.
Highlights from the business and operational front-
- The Company accelerated the cloud-based remote monitoring software launch for ventilators as well as for Lumis devices in Europe, through the AirView platform.
- During the FY20, ResMed launched ResMed MaskSelector, which is a digital tool for remote patient mask selection, sizing easier and more effective, helping patients in receiving the care from home.
On 9 October 2020, RMD share price stood at A$24.110, down by 0.864%. ResMed has a market capitalisation of approximately A$35.24 billion. The 52-weeks high and low price were noted at A$29.300 and A$18.100, respectively.
The continued demand for ResMed’s ventilators and masks, coupled with the anticipated rise in diagnosis rate of sleep-related disorders, has put ResMed in a good position with expectations of a strong Q1 performance. The impressive financial results and rising demand has boosted investor confidence, evident in the substantial rise in RMD share price in 2020. The resurgence in COVID-19 cases across multiple geographies might create further prospects for the medical equipment company in the coming days.