ResMed (RMD) shares hit new highs

Stock

ResMed (RMD) $20.50 as at 25/10/2019

Event

Medical technology company ResMed has soared to all-time highs today on the back of a solid first quarter result. Shares are around 10% higher today although were as much as 15% higher  earlier in the session.

The quarterly update that was released before the market open showed a 16% increase in revenue dropping down to a 19% increase in operating profit vs the first quarter of last financial year. Growth was seen across the business with the company’s sleep apnoea mask benefiting from the introduction of new products.

ResMed also noted its software business, which helps health care providers with out of hospital care, saw revenue almost double in the period. While the sleep apnoea tech has been ResMed’s staple, the new software offering provides a lot of upside in the company’s value by providing ‘sticky’ reoccurring revenue with significant margins.

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