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nickdany123

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27/01/19

11:41

Post #: 37236914
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Originally posted by Msim878: ↑

Granted it was priced to perfection coming in to the results. Software as a segment is still a very small part of RMD's total revenue base but it's something that management are clearly favouring and leaning towards as a future driver of growth for the business.

Ok so there are the facts:

-The core devices business was sluggish, growing just 3% on the prior corresponding period on a constant-currency basis.
-In U.S., Canada, and Latin America devices, sales growth of 7% was offset by revenue declining in the rest of world markets, with France and Japan particularly challenged following digital health upgrade systems in those countries.
-Reality is RMD should expand the devices business at a high-single-digit compound annual growth rate over the medium term as it increases its share of an unpenetrated and growing market.
-The masks business increased revenue 10% on the prior corresponding period on a constant-currency basis, outpacing the lower-margin devices business.
-This favourable shift in product mix, along with manufacturing efficiencies, allowed ResMed to enjoy a 70-basis-point expansion in gross margin from 58.2% in the first quarter to 58.9% in the second quarter. - Market has missed this completely because its too preoccupied with revenue.

You say that the CEO and CFO were looking for words and dodging questions, here's a direct quote from the CEO in a post results interview.

“I don’t get too excited about it being up in one day or too upset about it being down in one day. I’m really focused on that one-, three- and five-year picture.“I feel good about the five-year picture and it is an opportunity now for people to buy in and focus on that five year picture.”

A big reason why professional investors have placed confidence and backed this company has been management and how astute they have been in terms of running the company.

Again with respect, those sales by insiders are hardly material and while I understand what your trying to say I don't think there's anything sinister looking at those numbers...have seen so much worse.

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Points well taken. Let's see how things unfold at ResMed over the next 12 - 18 months. Good luck to all holders!

RMD Price at posting: $14.47 Sentiment: None Disclosure: Not Held
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