Ann: ResMed Announces Results for the Fourth Quarter of FY2024, page-36

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Monday, 5 August 2024

RMD - RESMED INC

Macquarie rates RMD as Outperform (1) - While ResMed's 4Q was largely in line with Macquarie's forecasts, the gross margin and management's FY25 guidance beat expectations.

The broker's Outperform rating is maintained on a favourable growth outlook, balance sheet position and valuation appeal and the stock remains a preferred sector exposure by Macquarie, along with CSL ((CSL)).

Revenue in Q4 was in line with the analyst's forecast comprising a -3% devices revenue miss and a 4% beat for masks/accessories. The gross margin of 59.1% was also a circa 80bps beat supported by favourable mix, lower costs and increased average selling prices.

Macquarie's target rises to $36.25 from $35.40.

Target price is $36.25 Current Price is $31.80 Difference: $4.45 If RMD meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges). Current consensus price target is $34.31, suggesting upside of 7.9%(ex-dividends)The company's fiscal year ends in June.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 32.81 cents and EPS of 142.99 cents . At the last closing share price the estimated dividend yield is 1.03%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.24. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 138.9, implying annual growth of N/A. Current consensus DPS estimate is 32.4, implying a prospective dividend yield of 1.0%. Current consensus EPS estimate suggests the PER is 22.9.

Forecast for FY26:

Macquarie forecasts a full year FY26 dividend of 34.64 cents and EPS of 157.18 cents . At the last closing share price the estimated dividend yield is 1.09%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.23. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 155.6, implying annual growth of 12.0%. Current consensus DPS estimate is 38.7, implying a prospective dividend yield of 1.2%. Current consensus EPS estimate suggests the PER is 20.4.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.7All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources