ResMed slightly beats quarterly profit estimates, shrugs tariff concerns

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By Sriparna Roy

(Reuters) -Resmed beat Wall Street estimates for third-quarter profit on Wednesday, driven by demand for its sleep apnea devices used to manage the common sleep disorder.

The company manufactures continuous positive airway pressure (CPAP) machines, which manage the common sleep disorder by keeping airways open during sleep, significantly improving sleep quality.

Shares of the San Diego-based company rose 2.6% to $220 in after market trading.

Investors have also been closely watching how medical device makers plan to navigate tariffs and whether they stand to gain from shifts in foreign currency rates.

Resmed said it is “very well positioned” with exemptions in place and does not expect the introduction of U.S. tariffs to have a material impact on its financial results.

The company will soon open its newest manufacturing location in Calabasas, California, which will double the size of its current manufacturing footprint in the US, CEO Mick Farrell said on a post-earnings call.

The company’s quarterly revenue rose 8% to $1.29 billion, in line with estimates, helped by heightened demand for its sleep devices and masks.

Some analysts had expected the U.S. approval of Eli Lilly’s weight-loss drug Zepbound, which belongs to a class of drugs known as GLP-1s, to treat sleep apnea and reduce demand for the company’s devices.

Resmed has shrugged off those concerns and said it expects consumer wearables tracking sleep health and GLP-1 therapies will encourage more patients to use their devices.

It posted an adjusted profit of $2.37 per share for the quarter ended March 31, compared with estimates of $2.36 per share, according to data compiled by LSEG.

(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid)