ResMed Inc. (NYSE:RMD) stock fell 1.45% (As on August 12, 11:41.01:38 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 22. Revenue in the U.S., Canada, and Latin America, excluding Software-as-a-Service, grew by 12 percent, primarily due recovery of core sleep patient flow that was previously impacted by COVID-19. Revenue in Europe, Asia, and other markets grew by 1 percent on a constant currency basis. Excluding the impact of COVID-related sales in the prior year quarter, revenue grew by 8% on a constant currency basis. Software-as-a-Service revenue increased by 8 percent, due to continued growth in the Durable Medical Equipment category and stabilizing patient flow in out-of-hospital care settings. The non-GAAP gross margin increased by 50 basis points, mainly due to an increase in average selling prices and favorable product mix changes, partially offset by higher freight and manufacturing costs, and unfavorable geographic mix changes. Non-GAAP net income increased by 10 percent to $219.2 million. Operating cash flow for the quarter was $79.5 million, reflecting the impact of increases in working capital. The non-GAAP income from operations increased by 4 percent.
RMD in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.49, beating the analysts’ estimates for the adjusted earnings per share of $1.48, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 8 percent to $914.7 million in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $917.4 million. This is driven by increased demand for our sleep and respiratory care devices and reduced competitive supply.
Additionally, the company has declared a quarterly cash dividend of $0.44 per share. The dividend will have a record date of August 18, 2022, payable on September 22, 2022.
On the other hand, the company has Announced a definitive agreement to acquire privately held MEDIFOX DAN, a German leader in out-of-hospital software solutions for providers in major settings across the care continuum, from Hg, a leading software and services investor. Under the agreement terms, ResMed will acquire MEDIFOX DAN for approximately US$1.0 billion (€950 million), which ResMed expects to fund with its existing credit facilities. The transaction is expected to close by the end of the second quarter of ResMed’s fiscal year 2023 (December 31, 2022), subject to regulatory clearances.