) reported EPS of 53 cents in the fourth quarter of fiscal 2012,
comfortably beating the Zacks Consensus Estimate of 48 cents and
also the year-ago EPS by 43%.
Apart from increased sales and higher margin, a 6.8% fall in
shares outstanding contributed to the bottom-line improvement.
However, the fiscal 2012 EPS of $1.71 missed the Zacks Consensus
Estimate by a penny and was up 19%.
Revenues increased 9% year over year (up 13% at constant
exchange rates or CER) to $371.9 million, but missed the Zacks
Consensus Estimate of $373 million. For the full year, revenues
came in at $1.37 billion, in line with the Zacks Consensus Estimate
and up 10% (11% at CER).
Based on a favorable product mix and vastly under-penetrated and
growing sleep-disorder breathing market, during the fourth quarter
of 2012, revenues in Americas and outside Americas increased 13%
year over year to $207.4 million and 3% (13% at CER) to $164.5
million, respectively. Strong year-over-year growth in flow
generator and mask categories contributed to the
The company reported domestic flow generator sales were $90.2
million in the quarter, up 9% year over year due to growth in the
home sleep testing market and a shift from basic
Continuous Positive Airway Pressure
(CPAP) to Automatic Positive Airway Pressure (APAP) systems. Masks
and other sales were $117.2 million, up 17% year over year driven
by strong contributions across mask product range and continued
growth in accessories.
Gross profit climbed 13.9% to $226.5 million leading to 270
basis points (bps) expansion in gross margin to 60.9%. Selling,
general and administrative and research and development expenses
during the quarter were up 3% (9% at CER) to $105.9 million and up
3% (10%) to $27.9 million respectively favorably impacted by
appreciating US dollar. Despite, operating margin increased 460 bps
to 24.9% during the quarter.
ResMed exited the fiscal with cash and cash equivalents of
$809.5 million compared with $735.3 million at the end of fiscal
2011. Cash flow generated from operations was $97 million during
the fourth quarter.
ResMed repurchased 2.8 million shares for $89 million during the
quarter (13.6 million shares for $391.2 million in the fiscal) and
was left with authorization to repurchase 8.8 million shares.
Moreover, the Board of Directors also declared a quarterly dividend
of 17 cents per share, payable on September 28, 2012.
Even amidst the challenging macroeconomic scenario in Europe, we
are encouraged with ResMed's overall improved top and bottom-line
performances during the fourth quarter and fiscal 2012. Presently,
ResMed is emphasizing on building strategic relationships in order
to penetrate further in the domestic and international arena that
includes the 5-year exclusive distribution agreement with
Currently ResMed retains a short-term Zacks #3 (Hold Rank).
CAREFUSION CORP (CFN): Free Stock Analysis
RESMED INC (RMD): Free Stock Analysis Report
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