Earnings Preview: ResMed

ResMed Inc. (RMD) is expected to report Q1 earnings after the close Thursday with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 38c on revenue of $218M. The consensus is 34c to 41c for EPS, and revenue of $210M to $227M, according to First Call. For Q4, the company reported EPS 40c vs. consensus of 39c and revenue $235M vs. consensus of $220M.

Positive drivers this quarter include an expanded relationship with Apria and sales growth in new product areas like the Mirage Micro Nasal mask. Negatives for this quarter include narrowing margins and higher raw materials costs.

Analyst Views

Wachovia upgraded the shares to Outperform from Market Perform citing the the company's strong balance sheet and its belief the recent acceleration in growth is sustainable.