ResMed Inc: 3Q beat - Improving supply and manufacturing output
About the author:
- Author name:
- By Dr Derek Jellinek
- Job title:
- Senior Analyst
- Date posted:
- 01 May 2023, 8:00 AM
- Sectors Covered:
- ResMed (ASX:RMD) 3Q was ahead of expectations on strong sales across all product lines, but with GM headwinds and higher opex limiting robust operating leverage.
- Improved supply and manufacturing scale-up saw unconstrained S10 devices access in North America, with some (albeit improving) constraints on S11 devices, while masks benefited from resupply programs and all time highs in new patient setups.
- While softer GPM disappointed, it appears due mainly to unanticipated unfavourable product mix and higher component costs, with management confident headwinds are abating and margins can expand going forward.
- We adjust FY23-25 forecasts modestly, with our DCF/SOTP based target price increasing to (login to view). Add rating maintained.
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