Medical devices group Resmed has just missed analyst expectations for its March quarter earnings, with chief executive Mick Farrell describing conditions in the key US market as particularly challenging.
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The company, which makes products to help patients with sleep breathing disorders such as sleep apnea, posted revenue of $US397.8 million for the three months to March 31. This was just below analysts' consensus expectations of $US401 million in revenue, but up from $US383.6 million in the previous period.
Diluted earnings per share rose from $US0.58 to $US0.63, just missing analyst expectations of $US0.64.
The company's shares fell 1.79 per cent overnight to $US46.75. The stock is up 3.04 per cent over the last 12 months. Resmed previously had its primary listing on the ASX before moving to the New York Stock Exchange.
Mr Farrell said the company was "pleased with our third quarter results in the face of challenging market conditions, particularly in the US.
"Our Americas business showed encouraging trends and we continue to benefit from our globally diversified business, with constant currency revenue growth of 6 percent in combined Europe and Asia-Pacific businesses for the quarter.
"In particular, our European results were strong across the board, with most countries showing solid growth."
Revenue from the group's American business was flat at $US216.1 million (compared with $US215.2 in the prior year) while revenue from he rest of the world grew by 8 per cent (or 6 per cent in constant currency terms) to $181.6 million.
Mr Farrell has big ambitions for Resmed. In a speech he gave in Melbourne last month he said ResMed wanted to work with "appropriate consumer partners and well-known brand names" in the consumer space to make personal products that can monitor consumers' health signs, such as heart and respiratory rates and how well they are sleeping.
A number of wearable technology groups including Jawbone and Fitbit have products that monitor sleep cycles.
"We think there's something in this," Mr Farrell said in his speech. "We want to win this space but we also love the fact that everyone else is talking about it."
Resmed chief executive Mick Farrell said the company was "pleased with our third quarter results in the face of challenging market conditions, particularly in the US.
