Resmed shares down despite FY revenue jump
Respiratory face mask and machine maker ResMed's annual revenue has pushed past the $US2 billion mark as fourth-quarter revenue lifted in the Americas, Europe and the Asia-Pacific.
ResMed chief executive Mick Farrell said ResMed had a solid finish to the year, fuelled by sales of masks, air pumps, and software services.
"We are positioned for another great year ahead," Mr Farrell said.
ResMed on Wednesday booked a 12 per cent lift in annual revenue to $US2.1 billion for the 2016/17 financial year.
But various factors, including restructuring, litigation and acquisition expenses, pulled annual net income back by three per cent to $US342.3 million.
Excluding one-off items, annual net income rose six per cent to $US401.3 million.
ResMed's fourth-quarter revenue in the Americas rose eight per cent to $US350.2 million compared to a year earlier, and revenue in the combined EMEA (Europe, Middle East and Africa) and Asia-Pacific markets rose by six per cent to $US206.5 million.
ResMed also lifted its fourth-quarter dividend by six per cent to 35 US cents, saying the increase reflected the company's confidence in its long-term outlook and strategy.
But ResMed's shares had fallen by 50.5 cents, or 5.23 per cent, to $9.15 at 1459 AEST.
The Motley Fool's Tom Richardson said ResMed shares already traded on a high valuation, and the share price fall most likely reflected investors' lofty expectations.
Mr Farrell said the drop in the share price may be reflecting market disappointment in the volume growth in sales of some masks, which had been impacted by supply constraints arising from the manufacturing process.
But those supply problems had now been resolved.
In the fourth quarter, ResMed launched two new products: the AirMini air pump for travellers, which ResMed says is the world's smallest CPAP (continuous positive airway pressure) machine; and the AirTouch mask, REsMed's softest-ever CPAP mask..
Mr Farrell said the adoption rate of the AirMIni by consumers was encouraging.
"In geographies like Australia, New Zealand, Singapore, Hong Kong and the UK where there's a strong direct consumer channel, patients have been really running to it (the AirMini)," Mr Farrell said on Wednesday.
"In the US, we're appealing to home-care providers, and we're starting to make some good sales.
"So think that's going to be a good runway over the next 12, 24 months."
RESMED REVENUE UP, PROFIT DOWN
* Annual net profit down 3pct to $US342.3m
* Revenue up 12pct to $US2.1bn
* Fourth-quarter dividend up 6pct to 35 US cents
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