ResMed stock bounce on record quarterly profit

By Dylan Bushell-Embling
Monday, 06 August, 2012

ResMed’s (ASX:RMD) stock has jumped by over 12% following the announcement that the company grew its FY12 net profit by 12% to US$254.9 million ($243.3 million), helped along by another quarter of record revenue and earnings.

The respiratory device maker reported revenue for the year of US$1.37 billion, up 10% from the prior year.

For the fourth quarter, profit grew to a record US$76.8 million, up by 31% year-on-year, and more than US$14 million higher than last quarter's record.

Revenue for the quarter grew 9% to US$371.9 million. Revenue from the Americas climbed 13% to $207.4 million, while revenue from outside the region increased a more modest 3%.

R&D expenses grew 3% to US$27.9 million, or 7.5% of revenue. Expenses were lessened due to the depreciation of the Australian dollar against the Greenback.

ResMed was founded in Australia, but is now incorporated in the US. The company is listed on the New York Stock Exchange, and has CDIs trading on the ASX.

The company has declared a dividend for the quarter of US$0.17 per share, with Australian CDI owners slated to receive an equivalent amount in Australian dollars, factoring in the exchange rate.

In June, the company launched its latest medical device to treat snoring and sleep apnoea, Narval CC, into the US market.

ResMed (ASX:RMD) CDIs were trading at $3.41 as of midday Monday, up from $3.02 on Friday morning.

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