ResMed Inc. Earnings: Beats Expectations

ResMed Inc. (NYSE:RMD) reported net income above Wall Street’s expectations for the fourth quarter. ResMed is a developer, manufacturer and distributor of medical equipment for treating, diagnosing and managing sleep-disordered breathing and other respiratory disorders.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

ResMed Inc. Earnings Cheat Sheet

Results: Net income for ResMed Inc. rose to $76.8 million (53 cents per share) vs. $58.5 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 31.4% from the year-earlier quarter.

Revenue: Rose 8.8% to $371.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ResMed Inc. beat the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $338.5 million.

Quoting Management: Peter C. Farrell Ph.D, chairman and chief executive officer, commented, “In the fourth quarter of fiscal 2012 we showed strong year-over-year growth on the top and bottom line and both our flow generator and mask categories did well. Revenue in Americas increased by 13% to $207.4 million over the prior year’s quarter. Revenue outside Americas increased by 3% to $164.5 million over the prior year’s quarter, or a 13% increase on a constant currency basis. Operating profit for the June quarter was $89.7 million and cash flow from operations was a robust $97.0 million, demonstrating excellent operating performance.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 21.1% and in the second quarter, the figure rose 7.6%.

Revenue has increased for four quarters in a row. Revenue increased 11.4% to $349.1 million in the third quarter. The figure rose 8.7% in the second quarter from the year earlier and climbed 11.6% in the first quarter from the year-ago quarter.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 5 cents in the third quarter and by 4 cents in the second quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 41 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $1.60 per to share to $1.62.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Boeing Stock a DREAM Investment?

Are These 5 TOP Stock Performers Overbought?

Time to Buy or Sell BofA Stock?