On August 7, ResMed declined 7.69% in regular trading, trading at approximately $203.76 per share, with turnover of $76.64 million.
The decline was triggered by the company's fiscal Q4 earnings release and subsequent analyst downgrades. ResMed reported adjusted EPS of $2.95, beating the $2.89 consensus, while revenue of $1.46 billion matched expectations with 8.1% year-over-year growth. However, the revenue growth rate has decelerated from prior double-digit levels to approximately 8%, forming a notable gap with the company's three-year EPS CAGR of 19%.
Morgan Stanley downgraded the stock to equal weight from overweight, warning that GLP-1 weight-loss drugs and competitive product entries will structurally compress growth. RBC Capital and Citi also reduced ratings or price targets. Additionally, Astral field safety notification costs of approximately $41.9 million pressured GAAP margins. While the company announced plans to return over $1.85 billion to shareholders in FY2027 and raised its quarterly dividend 10% to $0.66 per share, these measures failed to offset bearish sentiment.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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