RMD -9.31%: Hit hard today after reporting 4Q23 earnings overnight in the US that were softer than expected. A combination of slightly softer revenue, lower gross margin and higher costs created a weaker than anticipated result. Adjusted EPS of $1.60 was higher than last year ($1.49) but below consensus of $1.70. Revenue was up 23% to $1.12bn but below the $1.13bn expected with that issue compounded by a gross margin of 55% vs. 57.1% last year and estimate of 56.5%. While the result is light on, they are still delivering strong top line growth as demand continues for their products – margins as issue which leads to reasonable reductions in valuation in outer years.
- We own RMD and do not intend to sell it given the sharp decline.
MM is now neutral RMD following todays result
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