ResMed Inc., a maker of machines to regulate breathing for people with sleep disorders, rose to a record in Sydney trading after reporting a 24 percent gain in second-quarter profit.
ResMed shares climbed 7 percent to close at A$4.58, their highest since the stock began trading in Australia in November 1999. Almost 11 million shares changed hands, about three times the daily average in the past three months.
Net income climbed to $77.9 million, or 53 cents a share, in the quarter ended Dec. 31, while revenue increased 13 percent to $376.5 million, ResMed said in a statement yesterday. The earnings per share were 6 percent more than projections by Citigroup Inc. and sales beat the broker’s estimate for 10 percent growth.
“This is another strong result for Resmed, and continues the momentum” of the past two quarters, Alex Smith, an analyst at Citigroup in Sydney, said in a note today. “We continue to think Resmed is the best value of the major healthcare stocks,” wrote Smith, who has a buy rating on the stock.
Poway, California-based Resmed generates more than half its sales in the U.S.
ResMed declared a quarterly dividend of $0.17 per share to be paid on March 19. The company said it bought back 1 million shares at $40 million during the quarter.
Shares of ResMed traded in New York climbed 0.8 percent to $45.47 yesterday, before earnings were reported. The stock rose to as high as $48.25 in after-hours trade.