S&P/ASX 200 Index (ASX: XJO) healthcare share ResMed Inc (ASX: RMD) is marching higher in morning trade.
ResMed shares closed yesterday trading for $32.96 per share and are currently trading for $33.71, up 2.28%.
This comes after the blue-chip healthcare stock released its quarterly second-quarter results for the 2023 financial year (Q2 FY23) this morning.
Read on for the highlights.
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What results did the ASX 200 healthcare share report?
The ResMed share price is in the green after the ASX 200 healthcare share reported revenue of $1.03 billion for the three months ending 31 December. That's up 16% from the prior corresponding period of Q2 FY22 when the company reported revenue of $849.9 million.
On a constant currency basis, revenue grew by 20%. ResMed credited this to increased demand for its sleep and respiratory care devices coupled with a diminished competitive supply.
Meanwhile, gross margin contracted by 0.30% to 56.1% while income from operations increased 13% from the prior corresponding period. This helped drive ResMed's non-GAAP (Generally Accepted Accounting Principles) operating profit up 14%.
Diluted earnings per share (EPS) came in at $1.53, up 12% from the $1.37 EPS in the prior corresponding quarter. EPS was lifted by strong sales but received some headwinds from higher operating expenses over the quarter.
ResMed declared a quarterly cash dividend of 44 cents per share with a record date of 9 February. The dividend will be paid out on 16 March.
What did management say?
Commenting on the quarterly results sending the ASX 200 healthcare share higher today, ResMed CEO Mick Farrell said:
We significantly increased production and delivery of flow generator devices to meet the incredible demand from customers, resulting in strong sales growth in the Americas, and solid overall performance for our business across 140 countries…
We cleared the final regulatory hurdles and closed the acquisition of MEDIFOX DAN, expanding our outside-hospital Software-as-a-Service (SaaS) business to its first market outside the US. We will deliver ongoing, sustainable growth through this exciting expansion of our business model in Germany, with strong links to both our global SaaS business and our market-leading German business in sleep and respiratory care.
How has this ASX 200 healthcare share been tracking?
The ResMed share price is off to a strong start in 2023, up 11% since the opening bell on 3 January.
As you can see in the chart below, over the past 12 months the healthcare share has gained 7%.
