ResMed tops Wall Street ’ s Q2 earnings forecast, despite $127m tax hit

The U.S. tax reform passed last year dealt a $127 million blow to ResMed (NYSE:RMD) during its fiscal second quarter, but the sleep apnea company still managed to top Wall Street’s consensus earnings forecast with its Q2 results. San Diego-based ResMed posted profits of $9.5 million, or 7¢ per share, on sales of $601.3 million for the three months ended Dec. 31, 2017, for a bottom-line slide of -87.6% on sales growth of 13.4% compared with fiscal Q2 2016. The profit decline was driven by the Dec. 22 enactment of the U.S. tax reform bill, which delivered a $126.6 million hit to ResMed’s books consisting of a $119.9 million expense on unremitted foreign earnings and a $6.7 million charge due to reduced net deferred tax assets, the company said. Excluding those and other one-time charges, earnings per share were $1 even, 22¢ ahead of the consensus on The Street, where analysts were looking for sales of $622.2 million. “We had a strong quarter with double-digit revenue and operating profit growth,” ceO Mick Farrell said in prepared remarks. “Our masks have performed well around the world, device sales are solid, and our cloud-based software continues to grow rapidly. Our operating excellence initiatives are achieving leverage in the business with more runway ahead. “We recently announced our first ResMed branded portable oxygen concentrator, called Mobi, which will launch in the current quarter. Mobi exemplifies patient-centered innovation ...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Respiratory Wall Street Beat ResMed Inc. Source Type: news