What Happened?
Shares of medical device company ResMed (NYSE:RMD) jumped 3.1% in the afternoon session after the company reported strong fourth-quarter financial results that surpassed analyst estimates.
The medical device maker announced that its revenue grew 10% year-over-year to $1.35 billion, while adjusted earnings per share jumped 23% to $2.55. These results beat Wall Street's expectations. The company's management attributed the solid performance to robust global demand for its sleep and breathing health devices. In a sign of confidence, ResMed also announced a 13% increase in its quarterly dividend. Following the strong report, Keybanc analysts raised their price target on the stock, which signaled continued positive sentiment.
After the initial pop the shares cooled down to $279.89, up 2.9% from previous close.
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What Is The Market Telling Us
ResMed’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
ResMed is up 22.5% since the beginning of the year, and at $279.89 per share, has set a new 52-week high. Investors who bought $1,000 worth of ResMed’s shares 5 years ago would now be looking at an investment worth $1,386.
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