(Reuters) – ResMed beat Wall Street estimates for quarterly profit on Thursday, driven by strong demand for its devices used for sleep apnea treatment.
Shares of the company rose about 4% in after-hours trading.
The San Diego, California-based company posted adjusted profit of $2.20 per share for the quarter ended September 30, beating estimates of $2.04 per share.
ResMed makes continuous and bilateral positive airway pressure machines for non-invasive treatment of sleep apnea – a condition in which the airway gets blocked multiple times while sleeping.
The medical device maker’s first quarter revenue for the fiscal year 2025 rose 11% to $1.22 billion, compared to analysts’ estimates of $1.18 billion, according to data compiled by LSEG.
The revenue growth was driven by increased demand for its sleep devices and masks portfolio, the company said.
Some analysts expect significant risk of disruption in patient demand for ResMed’s sleep apnea products next year, as the U.S. Food and Drug Administration is likely to approve Eli Lilly’s weight-loss drug Zepbound for sleep apnea by the end of 2024. The company, however, had previously shrugged off such concerns.
(Reporting by Sriparna Roy in Bengaluru and Sneha S K; Editing by Mohammed Safi Shamsi)
