MENU

ResMed Shares Plunged: What You Need to Know

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of ResMed Inc. (ASX:RMD) had a rough day yesterday falling 14% after the company released earnings.

So what: Third-quarter revenue grew 12% to $US314.8 million but fell well short of the $US327.9 million in revenue analysts were expecting. On the bottom line, earnings fell 11% to $US0.33 per share, $US0.02 below estimates.

Now what: A weak U.S. dollar relative to the euro and Australian dollar was blamed for some of the shortfall, but it looks like expectations were much too high. Declining profit is never a good sign, and I would be cautious jumping on shares right now. The stock’s price/earnings multiple of 19 times trailing earnings will look very expensive if the lower earnings trend continues.

Founded in Australia, ResMed is dual listed on NYSE and the ASX. ResMed reports in U.S. dollars.

Are you looking for more quality stock ideas? Readers need look no further than The Motley Fool’s Top Stock For 2012. Click here now to request this special report, whilst it’s still free and available.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!