ResMed Earnings: Strong Mask Sales and Cost Control Offset U.S. Device Softness

We maintain our USD 258 fair value estimate for narrow-moat ResMed, or AUD 40 per CDI at current exchange rates, following first-quarter fiscal 2024 results. Underlying EBIT of USD 319 million grew 4% sequentially on fourth quarter fiscal 2023, with sales down 2% but underlying EBIT margin expanded roughly 150 basis points to 29%. We decrease our revenue forecasts over the next five years by 1% on average, but our underlying EBIT forecasts increase by 1% on average, overall.