Medical-device maker ResMed (NYSE:RMD) vaulted to a new high Friday after its fiscal Q2 results beat estimates late Thursday.
For the quarter ended Dec. 31, ResMed earning 65 cents a share, up 6.6% from the year-earlier quarter and beating estimates by 4 cents. Sales rose 10% to $423 million, topping consensus by $19 million and the second straight quarter of acceleration.
The company's growth had been slowing the last few years due to pricing pressures, but Q2 benefited from the launch of several new products that expanded on the firm's legacy in sleep-apnea devices, including a ventilator and a high-tech sleep-monitoring system. ResMed, as usual, did not offer guidance, but analysts are expecting a modest acceleration of profit and sales growth over the next year.
Needham analyst Mike Matson upgraded the stock to buy from hold, saying that he expects revenue growth and margins to improve due to the new products and the annualization of its earlier price cuts. He set the price target at 77.
ResMed shares rose 8.4% to 67.07 in afternoon trading on the stock market today, hitting a record 67.50 intraday. ResMed's stock has soared 41% since its last earnings report, which fueled a 9.1% pop the following day.
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