Latest news with #MickFarrell
Yahoo
4 days ago
- Business
- Yahoo
ResMed's Q1 Earnings Call: Our Top 5 Analyst Questions
ResMed's first quarter results were met with a strong market response, reflecting in-line revenue and profit performance alongside notable margin expansion. Management credited manufacturing and logistics efficiencies, positive product mix shifts, and sustained demand in both devices and masks as primary contributors to improved profitability. CEO Mick Farrell emphasized the benefits of investments in automation and U.S.-based production, stating, 'Our results are a testament to the work that we do to enhance sleep health, breathing health, and health care delivery in the home.' The company also highlighted robust growth across geographies and a disciplined approach to operational spending. Is now the time to buy RMD? Find out in our full research report (it's free). Revenue: $1.29 billion vs analyst estimates of $1.29 billion (7.9% year-on-year growth, in line) Adjusted EPS: $2.37 vs analyst estimates of $2.36 (in line) Operating Margin: 33%, up from 31.3% in the same quarter last year Constant Currency Revenue rose 9% year on year (7% in the same quarter last year) Market Capitalization: $36.6 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lyanne Harrison (Bank of America) asked for a breakdown of margin expansion factors. CFO Brett Sandercock explained that manufacturing efficiencies, distribution improvements, and favorable product mix all contributed meaningfully. Margaret Kaczor (William Blair) inquired about sleep lab backlogs and the impact of new diagnostic tools. CEO Mick Farrell detailed metrics tracked on patient throughput and outlined how Night Owl aims to shorten diagnosis-to-therapy timelines. Suraj Kalia (Goldman Sachs) questioned the rationale behind increasing share buybacks amid demand and tariff uncertainties. CFO Brett Sandercock cited a strong balance sheet and cash flows, while Farrell emphasized a balanced approach to capital allocation, including tuck-in acquisitions. Anthony Petrone (Mizuho Group) sought clarity on the impact of GLP-1 medications on patient funnel expansion. Farrell noted early signs of increased referrals from primary care physicians and ongoing educational efforts to drive demand. David Bailey (Morgan Stanley) raised concerns about CPAP adherence among patients using GLP-1 drugs. Farrell responded that adherence rates remain strong and that lifestyle changes linked to these medications may even enhance long-term compliance. In the coming quarters, the StockStory team will be monitoring (1) the operational ramp-up and cost benefits from the new California manufacturing facility, (2) adoption rates for the Night Owl diagnostic tool and expanded software platforms, and (3) the effectiveness of adherence and resupply initiatives in boosting recurring revenue. We will also track regulatory developments and their potential impact on ResMed's global supply chain and reimbursement landscape. ResMed currently trades at $250.53, up from $214.36 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
12-06-2025
- General
- Yahoo
Officials celebrate as grizzly bears are caught on camera using unique new bridge: 'It was pretty amazing to see firsthand'
KHOL 89.1FM reported that grizzly bears in Wyoming are exploring the new wildlife crossings near Wyoming Highway 22. WYDOT, Teton County, and the Wyoming Wildlife Natural Resources Trust funded the four new crossings in the area for wildlife navigation around the existing intersection construction. After a rancher spotted the bear using one, project engineer Mick Farrell captured a photo as it crossed the Snake River. Designated crossings can improve wildlife conservation for Wyoming's 122 mammal species by reducing unnecessary contact with people. Seeing a healthy grizzly bear safely using the crossing was good news after four fatalities in a month. KHOL 89.1FM reported that one cub was hit by a car, and two young bears may have been killed by an adult male grizzly. Another one was euthanized after dangerous behavior in Yellowstone. Grizzlies enable healthy biodiversity, so it's a good sign to see them roaming in their space. These apex predators keep nature in balance by hunting herbivores capable of overgrazing, which also reduces foraging and habitat space for pollinators. Typical grizzly activities like digging help aerate the soil, and they disperse blueberry and buffaloberry seeds in their feces. The brown large bear that can reach up to 700 pounds is listed as threatened by the Endangered Species Act. However, conservation acts like wildlife crossings and data from tracking collars placed by the Wyoming Game and Fish Department can prevent them from moving up to endangered. Wildlife crossings in other areas have already shown success. The Banff Wildlife Crossings in Canada have reduced car collisions with wildlife by 80%. Bison in the UK are also getting some space — their roaming area will increase from 123 acres to 494 acres — from government-backed construction on the nation's first-ever bison bridge. Los Angeles is also taking action by building the world's largest wildlife crossing — measuring 210 feet long — over an eight-lane freeway. According to Smart Growth America, there are as many as one to two million collisions between cars and wildlife. Consequently, people can also get hurt, as 200 human fatalities, 26,000 injuries, and as much as $8 billion in property damage result from these specific accidents, per Pew Research. Safer and separate crossings are invaluable for all species, not just grizzlies. However, it's good that these legendary bears are leading the way. Farrell said, "It was pretty amazing to see firsthand the wildlife crossings working." Should the U.S. invest in building more wildlife overpasses? Absolutely Depends on how we do it Depends on where we do it Nope Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
26-04-2025
- Business
- Yahoo
RMD Q1 Earnings Call: Margin Expansion and Demand Generation Initiatives Define Quarter
Medical device company ResMed (NYSE:RMD) met Wall Street's revenue expectations in Q1 CY2025, with sales up 7.9% year on year to $1.29 billion. Its non-GAAP profit of $2.37 per share was in line with analysts' consensus estimates. Is now the time to buy RMD? Find out in our full research report (it's free). Revenue: $1.29 billion vs analyst estimates of $1.29 billion (7.9% year-on-year growth, in line) Adjusted EPS: $2.37 vs analyst estimates of $2.36 (in line) Adjusted EBITDA: $488.3 million vs analyst estimates of $474.1 million (37.8% margin, 3% beat) Operating Margin: 33%, up from 31.3% in the same quarter last year Free Cash Flow Margin: 43.2%, up from 31.8% in the same quarter last year Constant Currency Revenue rose 9% year on year (7% in the same quarter last year) Market Capitalization: $34.59 billion ResMed's first quarter results were underpinned by broad-based revenue growth and notable gross margin expansion, with management highlighting operational efficiencies and product mix as key drivers. CEO Mick Farrell described the quarter as one where manufacturing and logistics improvements, alongside investments in research and development, positioned the company to capture increasing demand for cloud-connected sleep and respiratory devices. New product launches, such as the Nite Owl home sleep apnea test and the expanded AirSense platform, contributed to enhanced adoption across key markets. Looking ahead, management is focused on initiatives to further expand the patient funnel and drive adherence, particularly through targeted demand generation programs and digital health investments. Farrell emphasized the company's strategy to leverage educational outreach, brand evolution, and partnerships with healthcare providers to accelerate diagnosis and therapy adoption. The company also reiterated a disciplined approach to capital allocation, balancing increased share buybacks with ongoing R&D and potential tuck-in acquisitions. ResMed's leadership attributed the quarter's performance to a blend of operational execution, product innovation, and targeted demand generation. Key business updates and management commentary included: Manufacturing and Logistics Efficiencies: Improvements in production processes and a shift from air to sea freight reduced costs and contributed to gross margin gains. Brett Sandercock, Chief Financial Officer, indicated that these changes brought margin benefits and positioned the company for sustainable improvement. Product Portfolio Expansion: The commercial rollout of Nite Owl, a compact home sleep apnea test, and the launch of the AirSense 11 VPAP TX platform enabled ResMed to address diagnostic backlogs and support more personalized therapy titration for patients. Digital Health Ecosystem Growth: Management discussed the integration of diagnostic tools with the AirView cloud software and MyAir patient app, aiming to build a seamless pathway from screening to therapy adherence. The continued adoption of the Somnawhere platform by large U.S. healthcare systems and the Veterans Administration was highlighted as a milestone. Brand Evolution Strategy: The company initiated a global brand unification campaign, seeking to raise awareness in sleep health and drive measurable returns on marketing investments. Early results from consumer advertising and physician education programs were described as encouraging for new patient flow. Tariff Exemptions and Supply Chain Resilience: Management confirmed that U.S. tariff exemptions remain in place for its medical devices, minimizing exposure to new trade measures. Expansion of manufacturing capacity in California is expected to further strengthen supply chain resilience and support U.S. market growth. Management's outlook centers on expanding the patient base, boosting adherence, and sustaining margin improvements through operational initiatives and digital health investments. Expanding Diagnostic Funnel: Targeted demand generation, including physician education and consumer outreach, is intended to accelerate movement of undiagnosed patients into therapy. Margin Improvement Initiatives: Ongoing focus on manufacturing efficiencies, product mix optimization, and procurement strategies is expected to provide a pipeline for further gross margin gains. Capital Allocation Flexibility: The company's strong cash flow supports increased share buybacks, continued R&D investment, and potential tuck-in acquisitions aligned with strategic objectives. Management noted that M&A will be pursued only when a clear strategic and cultural fit is established. Lyanne Harrison (Bank of America): Asked for specifics on margin expansion drivers. Management cited manufacturing efficiencies, distribution improvements, and product mix as key contributors, with each offering meaningful impact. Margaret Kaczor (William Blair): Questioned metrics tracked for demand generation investments. CEO Mick Farrell detailed tracking of patient flow timelines and adherence rates, emphasizing ongoing efforts to reduce diagnostic backlogs. Suraj Kalia (Goldman Sachs): Inquired about increased share buybacks given market uncertainty. CFO Brett Sandercock pointed to strong cash flow and a net cash position as supporting higher buyback levels, balanced with R&D and M&A priorities. Anthony Petrone (Mizuho Group): Asked how GLP-1 medications affect new patient funnel growth. Farrell explained educational outreach to high-volume prescribers and noted early signs that these efforts are increasing patient flow. David Low (JPMorgan): Sought clarity on device growth and backlog challenges. Farrell acknowledged normal seasonality and reiterated demand generation efforts to outperform underlying market growth rates. Looking forward, the StockStory team will monitor (1) the pace of new patient adoption as targeted demand generation programs scale, (2) the impact of manufacturing capacity expansion in California on supply chain flexibility, and (3) continued gross margin progression as operational initiatives mature. Additionally, developments in digital health platform integration and updates on any tuck-in acquisitions will serve as key indicators of execution against ResMed's strategic goals. ResMed currently trades at a forward P/E ratio of 23.2×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
CNBC
26-04-2025
- Business
- CNBC
We reaffirmed our tariff relief in 2008 and 2009, we went back again 3 weeks ago, says Resmed CEO
We reaffirmed our tariff relief in 2008 and 2009, we went back again 3 weeks ago, says Resmed CEO Mick Farrell, Resmed CEO, joins 'Mad Money' host Jim Cramer to talk GLP-1s, the impact of tariffs, quarterly results, and more.
Sky News AU
24-04-2025
- Business
- Sky News AU
Major Australian medical technology manufacturer ResMed secures tariff exemption from Trump Administration
A major Australian company has managed to secure a tariff exemption from the Trump Administration as the world waits to see how the United States President will proceed with the market rocking trade policies. The CEO of ResMed, a $49b company which manufactures sleep devices to treat sleep apnea and other chronic respiratory conditions, on Thursday revealed the Trump Administration will not apply tariffs to goods it makes in Australia or Singapore. ResMed's goods have been exempt from trade levies as they are protected under the Nairobi Protocol – an international agreement that guarantees products which help people with disabilities are duty-free. 'Our products are used to treat patients with chronic respiratory conditions that have been subject to global tariff relief for decades,' ResMed chief executive Mick Farrell told investors. 'We have reaffirmed that. That is the case with federal authorities just this month in the current setting.' ResMed's chief financial officer Brett Sandercock said the company was informed several days after President Trump made his 'Liberation Day' announcements that it would maintain its tariff exempt status, despite the US President hitting most countries around the globe with the levies. 'On April 5, US Customs and Border Protection issued a notice of implementation confirming that current tariff treatment of our products like ours continues,' Mr Sandercock said. 'Accordingly, we do not expect the introduction of US tariffs to have a material impact on our financial results.' ResMed also revealed plans to double its manufacturing footprint in the US by opening a new facility in California, as growing demand for the medical company's goods continues. While the company was given a tariff exemption, Mr Farrell said ResMed will continue to monitor the global trade environment as President Trump's trade announcements have rattled markets over the past month. 'As the global leader in helping patients with chronic respiratory conditions, we are closely monitoring the evolving global trade environment, particularly in area of tariffs,' he said. President Trump initially slapped a 10 per cent tariff on Australia - the baseline levy implemented globally - before temporarily pausing this, alongside most other tariffs he announced on "Liberation Day". The US still has a 145 per cent tariff on Chinese goods, while China has implemented a 125 per cent reciprocal tariff. President Trump, however, is expected to lower the tariff on the US, telling reporters earlier this week the levy is not sustainable.
