ResMed (NYSE: RMD) reported its fiscal fourth-quarter and full-year results on Thursday, Aug. 2. Sales growth topped 12% during the period thanks in large part to strength in masks and accessories. At the same time, management continued to demonstrate disciplined expense control . The combination helped drive a 24% boost to net income. The broad-based prosperity allowed the company's board to increase the quarterly dividend payment by 6%.
ResMed's fiscal fourth quarter: The raw numbers
Data source: ResMed. GAAP = generally accepted accounting principles.
What happened with ResMed this quarter?
- Revenue grew 10% in North America and 9% in Europe and Asia.
- In currency-neutral terms, devices grew 8% while masks and accessories grew 13%.
- Revenue from its Brightree software-as-a-service business grew 12% to $40.4 million. Management announced that it recently purchased an electronic health records company called HEALTHCAREfirst in an effort to continue to build out its software offering.
- Operating expenses grew at a low single-digit rate during the period. This was slower than overall sales growth and helped drive significant operating leverage .
- Non-GAAP net income growth remained strong thanks to expense control and favorable changes to the U.S. tax code.
- Stock buybacks totaled $25.9 million, or 250,000 shares, during the period.
- The dividend was raised by 6%. The new quarterly payout is $0.37 per share.
- ResMed announced a joint venture with Alphabet that is designed to help the hundreds of millions of undiagnosed sleep apnea patients around the world get diagnosed and find treatment solutions that meet their needs.
Zooming out to the full year, here's an overview of the company's key achievements:
- Revenue jumped 13% to $2.3 billion.
- Non-GAAP net income rose 27% to $507.8 million.
- Non-GAAP EPS increased 25% to $3.53.
What management had to say
CEO Mick Farrell was proud of how his company performed during the fiscal year:
He also reaffirmed that the company is in great shape to continue driving strong results into the future:
Looking forward
CFO Brett Sandercock doesn't share guidance with investors, but he did state that the company's effective tax rate in fiscal 2019 is expected to land between 22% and 24%.
Farrell ended his prepared remarks on the conference call with investors by stating that the company remains well positioned to achieve its long-term targets:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
