ResMed (ASX:RMD) lifts quarterly dividend, here’s how shares are reacting?

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ResMed (ASX:RMD) lifts quarterly dividend, here’s how shares are reacting?

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 ResMed (ASX:RMD) lifts quarterly dividend, here’s how shares are reacting?
Image source: © Rafaelhenriquepress | Megapixl.com

Highlights:

  • ResMed increases quarterly dividend by 5% to US$0.044 per share.
  • The expected payment date of the dividend is 22 September 2022.
  • The quarterly revenue of ResMed increased by 4% to US$914.7 million.
  • In full year 2022, the income from operations surged by 11%.

Medical device manufacturer, ResMed Inc (ASX:RMD) on Friday has shared fourth quarter results for the financial year 2022. Along with the quarterly results, the company has announced a quarterly dividend of US$0.044 per share, 5% higher than the previous year.

Despite the positive quarterly results and uplifted dividends, the shares of ResMed opened in red today (12 August 2022). At 10:58 AM AEST, the shares were spotted trading 3.26% down at AU$33.48 per share. Meanwhile, ASX 200 Health Care was trading 1.28% lower at 43,017.30.

ResMed declares dividend

The company announced a cash dividend of US$0.044 apiece for the fourth quarter, payable on 22 September 2022. The record date is 18 August 2022. The cash dividend will be paid to the ResMed stockholders trading securities on the New York Stock Exchange.

Investors holding CHESS Depositary interests (CDIs) on the ASX would receive an equivalent amount. The payment to CDIs holders will be made in Australian currency on the basis of the exchange rate on the record date. 

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Key highlights of the fourth quarter results

  • Group revenue increased to US$914.7 million, up by 4% year-over-year (YoY). On a constant currency basis, it is up by 8%. It was driven by the surge in demand for respiratory care and sleep devices.
  • Gross margin rose to 57.1% mainly because of a surge in average selling price and product mix changes.
  • Income from operations grew by 6%.
  • Net income was US$195.1 million.
  • Non-GAAP operating profit increased by 4%.
  • Diluted earnings per share were US$1.33.
  • During the quarter, US$61.5 million was paid in dividends.

During the quarter, the customers showed significant interest in the ‘100% cloud-connectable AirSense 11.’the company launched AirSense 10 Card-to-Cloud solutions during the same period. The company expects that both devices will drive solid growth in FY23.

Key highlights of the FY22 results

  • In the full year 2022, the company recorded revenue of US$3.6 billion, up by 12%.
  • The gross margin reached 56.6% during the year.
  • Income from operations grew by 11%.
  • Diluted earnings per share stood at US$5.30.

Road ahead!

ResMed’s CEO, Mick Farrell, said that the company’s top priority is to make its products available to the patients directly who are in the most need of therapy. Farrell showed optimism is growing steadily in the fiscal year 2023. Reportedly, the company is investing in research & development to boost the adoption of digital health solutions in COPD, the sleep arena and outside-hospital care. The 2025 goal of ResMed is to improve 250 million lives.

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