Sector: Health Care | Focus: Health Care Equipment
HQ: San Diego, California
Financial Risks
ResMed faces risks from litigation, including patent infringement lawsuits (e.g., NYU, Cleveland Medical). The outcome of these cases is uncertain, potentially impacting financial statements. Foreign currency fluctuations affect operating results and require hedging. Inflationary pressures could negatively impact margins and expenses. Supply chain disruptions and third-party actions are also potential risks. Debt covenants and interest rate changes pose risks.
Financial Upside
ResMed's net revenue increased 11% year-over-year, driven by increased demand and unit sales for devices and masks. Gross margin improved to 58.6% from 54.4%. Diluted earnings per share increased 42%. Cash and cash equivalents totaled $426.4 million, with $1.5 billion available under the revolving credit facility. Acquisitions and investments in research and development contribute to future growth potential.
