ResMed reports record revenue amid ventilator recall and cautious guidance

ResMed has reported record quarterly revenue of US$1.461 billion, representing a 9% increase, while net profit rose 14% to US$429 million. Despite these figures, the company's share price faced downward pressure following management's guidance for current-year sales growth of 5-7% and earnings per share (EPS) growth of 12-14%, which some investors found less robust than expected.

Additionally, ResMed is managing a recall of 168,000 Astral ventilators due to a faulty third-party capacitor. This issue has led to a suspension of manufacturing for these units to conserve parts. Management estimates the full-year impact of the recall to be US$75 million in revenue and a 15-cent burden on EPS, figures that are reportedly less severe than previous analyst fears.