ResMed Inc. (RMD) recorded an EPS of 68 cents in the fourth quarter of 2010, surpassing the Zacks Consensus Estimate of 66 cents and 59 cents in the year-ago period. For the full year 2010, the company recorded a 29% growth in EPS to $2.45.
The company reported revenues of $291.6 million, up 16% (18% at constant exchange rates, CER) compared with the year-ago quarter. However, revenues missed the Zacks Consensus Estimate of $293 million marginally. For 2010, revenues were $1.1 billion, up 19% (17% at CER) from 2008.
Based on a favorable product mix and an increase in market share, ResMed recorded a robust 20% growth in the domestic market to $169 million. Besides, revenues earned from the international market increased 11% (16% at CER) to $130.7 million.
Resmed’s growth in flow generators was mainly driven by strong sales of the recently launched S9 AutoSet and Elite products. Moreover, the company recorded strong growth of mask sales during the quarter.
Operating expenses increased 10% year over year during the quarter driven by an 8% rise in selling, general and administrative expenses and a 17.6% increase in research and development expenses. We believe the recent launch of products and the company’s several products under development were responsible for the rise in operating expenses.
Resmed exited fiscal 2010 with cash and cash equivalents of $488.8 million, up from $415.6 million at the end of June 2009. The company also announced a two-for-one stock split.
ResMed is one of the leading players in the market for generators, masks, and related accessories for the treatment of obstructive sleep apnea and related respiratory disorders. The company is focused on medical equipment for the diagnosis and treatment of sleep-disordered breathing. The overall business remains relatively unimpaired by economic cyclicality. In addition, the industry is benefiting from an aging population and a trend toward medical care away from hospitals.
