Here's What Analysts Are Forecasting For ResMed Inc. (NYSE:RMD) After Its Full-Year Results

ResMed Inc. (NYSE:RMD) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of US$5.7b and statutory earnings per share of US$10.43 both in line with analyst estimates, showing that ResMed is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ResMed after the latest results.

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Taking into account the latest results, the consensus forecast from ResMed's 24 analysts is for revenues of US$5.80b in 2027. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.1% to US$11.52. Before this earnings report, the analysts had been forecasting revenues of US$5.84b and earnings per share (EPS) of US$11.35 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for ResMed

There were no changes to revenue or earnings estimates or the price target of US$247, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ResMed analyst has a price target of US$325 per share, while the most pessimistic values it at US$175. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ResMed's past performance and to peers in the same industry. We would highlight that ResMed's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ResMed.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$247, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ResMed going out to 2029, and you can see them free on our platform here..

We also provide an overview of the ResMed Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.