Headline: ResMed Shares Surge 3% as Q1 Earnings Exceed Expectations

SAN DIEGO - ResMed Inc. (NYSE:RMD) announced that its first-quarter results for fiscal year 2025 surpassed expectations, leading to a 3.9% rise in the company's shares during after-hours trading. The sleep and respiratory care device manufacturer reported strong revenue growth and margin expansion, exceeding analyst estimates on both the top and bottom lines.

For the quarter ending September 30, 2024, ResMed posted adjusted earnings of $2.20 per share, surpassing the analyst consensus of $2.05. Revenue rose 11% from the same period last year to $1.22 billion, beating expectations of $1.19 billion.

The company's focus on operational excellence drove significant margin improvements. Gross margin increased by 420 basis points to 58.6%, while the adjusted gross margin rose by 320 basis points to 59.2%. Operating income grew by 34% compared to the same quarter last year.

Mick Farrell, ResMed's Chairman and CEO, stated, "Our first-quarter results for fiscal year 2025 reflect continuing momentum and strong performance across all areas of our business. We achieved 11% year-over-year revenue growth, and our focus on operational excellence once again resulted in year-over-year margin expansion and a 34% increase in operating profit."

The Sleep and Respiratory Health segment, which includes sleep devices and masks, reported an 11% revenue growth in the U.S., Canada, and Latin America. The company's Software as a Service business also performed well, with revenue increasing by 12% at constant currency.

ResMed generated a strong cash flow of $326 million during the quarter. The company also returned capital to shareholders through $78 million in dividends and $50 million in share repurchases.

Looking ahead, ResMed reaffirmed its commitment to its 2030 strategy, aiming to help over 500 million people achieve their full health potential by the end of the decade.