Resmed Inc CHESS Depositary Interests on a ratio of 10 CDIs per ord.sh (RMEA) AI Stock Analysis

Company Guidance

For fiscal year 2027, ResMed reiterated year-over-year revenue growth of 5% to 7% on a core constant currency basis, including an approximately 130 basis point headwind or around $75 million from no longer selling Astral; excluding Astral, core constant currency revenue growth would range from 6.3% to 8.3%, translating to reported revenue of $5.75 billion to $5.85 billion with an approximately 60 basis point FX headwind. Non-GAAP earnings per share is expected to be in the range of $12 to $12.25, an increase of approximately 7% to 10% on a reported basis, while core EPS growth would be in the range of 12% to 14% excluding MatrixCare and Nidra dilution. ResMed still expects low double-digit basis point margin expansion, a slight increase in operating margin percentage, more than $1.85 billion returned to shareholders, and capital expenditures in the range of $160 million to $180 million; Q2 is expected to show a mid-single-digit sequential increase in total revenue excluding the 2 months of MatrixCare revenue, non-GAAP gross margin percent to be down slightly sequentially, R&D expenses largely flat, SG&A expenses to sequentially increase, and net other income to be down roughly $10 million from Q1. The 5-year outlook features high single-digit top-line revenue growth and bottom-line earnings growth that's higher than revenue growth with leverage, while fiscal year 2027 RCS revenue is planned to deliver high single-digit revenue growth with operating leverage.