The Carsales.Com Ltd (ASX: CAR) share price has hit a bump on the road. It comes after the company held its 2021 annual general meeting (AGM).

At the time of writing, shares in the online vehicle retailer are trading for $25.04 – down 1.49%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.1% higher.

Let’s take a closer look.

What happened at the Carsales AGM?

Carsales revealed its outlook for FY22 in its presentation to shareholders. While the outlook was largely positive, investors don’t seem too revved up by it, judging by the falling Carsales share price.

The company said the following:

• Q1 of FY22 was tough for the company. Lockdowns in Australia’s two largest states had a material impact on car sales and listings. Since New South Wales and Victoria have opened up, however, sales are up.
• Carsales expects to deliver “strong” growth in Group Adjusted revenue, “solid” growth in Group Adjusted EBITDA and strong growth in Group Adjusted NPAT. The company said its financial performance will be more overly weighted to the second half of the financial year, due to the negative impacts of lockdowns.
• Outside of NSW and Victoria, car sales growth remained “solid” among established dealers and private listings.
• Core expenses are expected to increase with the end of JobKeeper.
• Finally, looking at its overseas businesses, Carsales expects strong growth in revenue and EBITDA across Brazil, the United States, and Korea.

Carsales FY21 results

When Carsales released its FY21 results, the Carsales share price increased.

At the time, and as it restated today, Carsales reported revenue up 4%, EBITDA up 10%, and adjusted NPAT up 11%. The company did declare a 10% lower dividend of 22.5 cents per share.

For the 12 months ended 30 June, Carsales delivered double-digit growth across its adjusted EBITDA and net profit metrics. This was broadly in line with the market’s expectations.

When the results were released, management said this reflected a resilient revenue performance driven by a strong performance from its international businesses, modest growth in the Australian business, and strong margin performance. The latter was apparently driven by cost management initiatives.

Carsales share price snapshot

Over the past 12 months, the Carsales share price has increased 17.4%. Year-to-date, shares in the company have increased 25.7%. Its 52-week high is $26.67 and its 52-week low is $16.72.

Carsales.com has an approximate market capitalisation of $7.1 billion.

The post Carsales (ASX:CAR) share price falls despite optimistic outlook appeared first on The Motley Fool Australia.

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• AFIC (ASX:AFI) share price struggles amid inflation concerns

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A hot topic right now in the US and Australian markets is the emergence of exchange-traded funds (ETFs) that are investing in cryptocurrencies and blockchain technologies.

That’s why there is considerable interest in ETF Securities‘ new product launched this month, named ETFS Fintech & Blockchain ETF (Chi-X: FTEC).

The ETF aims to track the performance of the Indxx Developed Markets Fintech & DeFi Index.

That index contains 75 fintechs from developed nations, with a subset involved in blockchain and decentralised finance (DeFi) concepts.

“FTEC uses a full-replication strategy to track the index, meaning that it holds all the shares that make up the index,” states the ETF Securities’ website.

“Companies are equally weighted, meaning at each rebalance the companies are bought in an equal proportion.”

Where do I buy shares in FTEC?

Unfortunately, FTEC shares are not traded on the ASX. They were floated on the rival exchange Chi-X, which some broking platforms have access to.

ETF Securities has not answered The Motley Fool‘s enquiry about why the ETF is not listed on the ASX.

Historically, the ASX has been wary of shares involved in blockchain or cryptocurrencies, fearing that they expose retail investors to speculative risk.

A famous recent example is Animoca Brands, which deals with non-fungible tokens (NFTs) and develops video games.

The Hong Kong company was listed on the ASX but it was kicked out in March 2020 when it had a market capitalisation of $80 million.

By June this year, Animoca was valued at $1.29 billion as a private company after a $100 million capital raising round.

There is now much industry talk about ASX allowing its first blockchain-related ETF to float.

The BetaShares Crypto Innovators ETF is “coming soon” to the ASX but the company has not yet indicated when.

What are the businesses FTEC invests in?

The majority of holdings for FTEC are overseas shares. In fact, just 1.3% of the fund is held in Australian companies.

American shares account for 62.3% of the ETF value, and they unsurprisingly monopolise the 5 biggest holdings:

• Upstart Holdings Inc (NASDAQ: UPST): 3.2%
• Affirm Holdings Inc (NASDAQ: AFRM): 2.8%
• LendingClub Corp (NYSE: LC): 2.2%
• Marathon Digital Holdings Inc (NASDAQ: MARA): 2.0%
• Bill.com Holdings Inc (NYSE: BILL): 2.0%

The post Is ETFS Fintech & Blockchain ETF (FTEC) listed on the ASX? appeared first on The Motley Fool Australia.

More reading

• Carsales (ASX:CAR) share price falls despite optimistic outlook
• Leading broker tips Fortescue (ASX:FMG) share price to sink to $11
• Bitcoin mania down under: Is the new crypto miners ETF (DIGA) listed on the ASX?
• Anteotech (ASX:ADO) share price slides as product platforms make waves
• Why Goldman says PointsBet (ASX:PBH) share price sell off is a buying opportunity

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is edging lower on Friday.

In morning trade, the iron ore giant’s shares are down 0.25% to $13.98.

This means the Fortescue share price is now down over 43% in 2021 and has its 52-week low in sight.

Could the Fortescue share price keep falling?

Unfortunately for shareholders, one leading broker believes the Fortescue share price could still fall meaningfully from here.

According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on the company’s shares to $11.00.

Based on the current Fortescue share price, this implies potential downside of 21% over the next 12 months.

What did the broker say?

Goldman Sachs was disappointed with the company’s performance during the first quarter. Not only did Fortescue fall short of the broker’s shipments estimates, its price realisation and product mix were well under its expectations.

The broker commented: “FMG shipped 45.6Mt of iron ore in the Sep Q (-2% vs GSe) at an average price realisation of 73% vs. the 62% Fe benchmark, below GSe/consensus (77%) on provisional pricing impacts. Production of the higher grade 60% Fe West Pilbara Fines (WPF) declined to 3.7Mt or 8% of the product mix, well short of the targeted 15-20%, despite the new Eliwana mine now fully ramped-up to 30Mtpa.”

Why is it so bearish?

Despite the Fortescue share price falling so heavily this year, Goldman believes it is overvalued. This is particularly the case compared to rival Rio Tinto Limited (ASX: RIO).

It explained: “The stock is trading at c. 1.5x NAV vs. RIO at c. 0.8x NAV. FMG is also pricing in c. US$77/t (real) long run iron ore vs. our US$67/t (real 2021 $) estimate.”

The broker also has concerns over the widening of low grade iron ore price realisations.

Its analysts said: “Widening of low grade 58% Fe product realisations due to high coking coal prices and high steel mill margins (similar to the steel/iron ore market dynamics at the end of 2017). Based on the 58% Fe price, we see FMG’s price realisations dropping to 70% in Dec Q.”

In addition, Goldman has concerns over uncertainties around Fortescue Future Industries (FFI) diversification and Pilbara decarbonisation. It thinks “decarbonising the Pilbara could cost FMG over US$7bn and requires +US$50/t carbon or a green premia to be NPV positive.”

The post Leading broker tips Fortescue (ASX:FMG) share price to sink to $11 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC) mania has reached Australia’s listed markets.

It comes in the form of a new exchange-traded fund (ETF).

Run by Cosmos Asset Management, the Cosmos Global Digital Miners Access ETF (DIGA) began trading in Australia yesterday.

DIGA doesn’t aim to track the price of Bitcoin, or any altcoin, for that matter. Instead, as the name implies, it aims to track the prices of a basket of cryptocurrency mining and infrastructure companies.

To answer the question posed in our headline, DIGA does not trade on the ASX. It listed yesterday on the ASIC regulated Aussie exchange Chi-X.

If you’re unfamiliar with the alternate exchange, here’s a simple explanation from CommSec, “Chi-X Australia is an alternative trading venue to ASX TradeMatch on the ASX which uses its own trading system and provides trading in a subset of ASX listed securities.”

Cosmos CEO on DIGA

Explaining why the company decided to launch DIGA, Cosmos CEO Dan Annan said (quoted by the Australian Financial Review), “For too long, investors have had to weigh up access to the growth of digital assets such as cryptocurrencies with the risks associated with investing through unregulated structures.”

Investing in DIGA, Annan said, “means investors do not have to directly hold cryptocurrencies and, importantly, provides Australians with the ability to access the potential upside of the next wave of financial market innovation.”

The ETF holds some 30 shares, including Riot Blockchain, Marathon Digital Holdings and Hut 8 Mining Corporation. These companies generate much of their revenue from cryptocurrency mining and transactions, dominated by Bitcoin.

No direct Bitcoin ETF for Australia… yet

If you were hoping for a direct Bitcoin ETF listed in Australia – akin to the futures-based ProShares Bitcoin Strategy ETF (NYSE: BITO) that launched with great success in US markets last week – get in line.

As the AFR notes, Annan had hoped, and still hopes to, launch an ETF that directly invests in Bitcoin. “There has been pent-up demand for a bitcoin ETF for some time. That is still in the works with the regulator and exchanges but we began looking at ‘what is the alternative?’”

But Aussie regulators aren’t racing to give a Bitcoin ETF the green light.

According to Chi-X CEO, Vic Jokovic, “There are fund managers that are ready. The hold-up is that it’s just not clear in whose wheelhouse regulation sits. There are a lot of people waiting for clarity from the government or regulator.”

The post Bitcoin mania down under: Is the new crypto miners ETF (DIGA) listed on the ASX? appeared first on The Motley Fool Australia.

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• Here’s what’s next for the Bitcoin price: expert panel

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Anteotech Ltd (ASX: ADO) share price is falling in early trading this morning. This comes after the research and development company released its quarterly activities and earnings update.

Shares in Anteotech are now changing hands at 23.5 cents apiece, which is a 2.08% drop from yesterday’s close.

Here we cover the central points in Anteotech’s performance for the period ending 30 September 2021.

Anteotech share price cools as regulatory approvals heat up

The company outlined several investment highlights it had achieved this quarter, including:

• Progress on achieving Australian regulatory approvals including ISO 13485 certification and TGA submission for EuGeni Reader and SARS-CoV-2 Ag rapid diagnostic test (RDT);
• Expansion of Life Science international distribution network to include 9 distributors across 17 territories;
• Addition of two new independent directors to its board;
• Established and held first meetings of clinical and energy advisory boards;
• Four new provisional product patent applications launched;
• Appointed three new executives after the quarter ended to enhance its marketing capability; and
• Continues to develop market entry strategy for EuGeni.

What happened this quarter for Anteotech?

It was a period of regulatory momentum for Anteotech. It received ISO 13485 certification and completed submissions to the Therapeutic Goods Association (TGA) for its EuGeni Reader and Covid-19 RDT.

For reference, ISO 13485 certification means the company has established an effective quality management system as it relates to safety and efficacy of medical devices.

It’s a 6-step process, and receiving the certification is essential before commercialisation of medical devices. It ensures products are designed, manufactured and distributed to Australian standards.

As such, Anteotech is currently “finalising the regulatory requirements for the EuGeni platform in a number of European countries and in Australia”.

This momentum was supported by efforts in expanding the company’s Life Science international distribution network to now cover 17 countries using 9 distributors of its products.

Anteotech also managed to advance its product development further this quarter. It achieved a “full technical transfer of test design and scaled manufacturing to a third party in Europe”, alongside the ISO 13485 audit.

The company also appointed three new executives, including Tim Pritchard as CFO.

These appointments are “the first of a number of new executives that herald an increased focus on product and market elements” for the company.

All in all, it was a quarter earmarked by significant advancements in the regulatory domain. This ultimately is another step towards full commercialisation of its EuGeni and AnteoX products.

However, the update hasn’t fired up investors, with the Anteotech share price falling from market open.

What did management say?

Addressing shareholders on the EuGeni platform, Anteotech CEO Derek Thompson said:

Whilst the success of the project has delivered considerable value to the company, the profile of achievement for a new legal manufacturer entrant to the IVD industry can only be measured against industry benchmarks. In the IVD industry, the average time to deliver a fully operational multi-test platform and distribution network from scratch is five to seven years at an average cost of $US34m. EuGeni has been built and delivered in a fraction of that time and cost.

What’s next for Anteotech?

Anteotech’s key focus areas are centred around commercialising its EuGeni platform, according to its release.

It also hopes to “expand its international Life Science distribution network and complete country-level regulatory approvals”.

Additionally, it hopes to continue building on market entry into the US for EuGeni after seeking regulatory approval there. It will also concurrently work to commercialise AnteoX.

Anteotech share price snapshot

Despite a 13% decline this past month, the Anteotech share price has soared by around 120% this year to date. It has also gained around 140% in the last 12 months.

That’s well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 25% in that time.

The post Anteotech (ASX:ADO) share price slides as product platforms make waves appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The PointsBet Holdings Ltd (ASX: PBH) share price has come under pressure again on Friday.

In morning trade, the sports betting company’s shares are down a further 10% to a 52-week low of $7.76.

Is the weakness in the PointsBet share price a buying opportunity?

The PointsBet share price has been sold off over the last couple of trading sessions following the release of its first quarter update.

According to a note out of Goldman Sachs, its analysts believe this could be a buying opportunity for investors. This morning the broker retained its buy rating but trimmed its price target to $12.79.

Based on the current PointsBet share price, this implies potential upside of 65% for investors over the next 12 months.

How did Goldman respond to the update?

Goldman notes that PointsBet delivered softer growth but stronger margins than it was anticipating during the quarter.

It commented: “PBH reported its 1Q22 update, which was characterized by: 1) Australia Net Win up 56% to A$54.8mn, well above recent peer commentary for the Sep-21 quarter, 2) strong gross/net margins in Aus of 13.9%/8.7% despite elevated promotional activity, 3) US turnover of +112% to A$348.6 mn came in softer than what was implied by our prior 1H21E, 4) however US Net Win was up 307% to A$12.5mn on 3.6% margins vs GSe 2.2% prior FY22E, and 5) overall sales/marketing spend of A$46.5 mn in the quarter was run-rating well below our prior 1H estimate of ~A$120mn.”

In addition, the broker highlights that management remains confident of operating in Arizona, as well as its 10% market share target in both Australia and the US over the long term.

Overall, Goldman has seen enough in this result to remain positive on the PointsBet share price. It feels investors should focus less on the short term and more on its long term opportunity.

It commented: “[We] Reiterate our Buy rating on PBH […] We believe the sell off is driven by the market’s focus on its short term quarterly handle market share trends; however we believe the LT thesis remains intact.”

The post Why Goldman says PointsBet (ASX:PBH) share price sell off is a buying opportunity appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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When it comes to investing in ASX shares, there are many variables to consider. One variable that can be worth a look at before buying is whether the company’s own directors and board members have also been investing in it.

While it may not be a green flag to go and buy, it certainly is a good sign when insiders show conviction in the company that they are working for by putting some of their own cold hard cash into it.

Let’s take a look at a few ASX-listed shares experiencing buying from insiders in the last month.

3 ASX shares that insiders are investing in

Ampol Ltd (ASX: ALD)

Landing on our list is one of Australia’s most popular fuel retailers, Ampol Ltd, formerly known as Caltex. This Aussie company has been busy during the last couple of months. Earlier this month the company agreed to fork out NZ$2 billion to acquire New Zealand fuel retailer, Z Energy.

The final details of the Z Energy acquisition were shared with the market on 11 October. It must have seemed like a good deal to non-executive director Elizabeth Donaghey, with the board member purchasing 1,600 shares in ASX-listed Ampol 2 days later. According to the notice, Donaghey picked up the holding at a price of $30.11, amounting to a total investment of $48,171.

The Ampol share price has increased 13.2% in the past month. In fact, the company’s shares are nearing a new 52-week high, with the milestone less than 1% away.

Data#3 Limited (ASX: DTL)

The next ASX share on the list is the $880 million IT solutions company, Data3. Despite a disappointing year of performance for the company, the last month has seen its share price increase by more than 20%. This came shortly after the unveiling of a record full-year result, booking $25.4 million in net profit after tax.

It appears two Data3 board members timed their investment well, with Mark Gray and Richard Anderson buying ~$60,000 and $46,500 respectively earlier in the month. According to the notice, the non-executive director and chair grabbed the shares between $4.65 and $5.

Following a continued rise in the Data3 share price, the two board members are now sitting on roughly $22,000 in paper profits between them.

Orica Ltd (ASX: ORI)

Last, but certainly not least, is possibly the only explosives and blasting systems company on the ASX. Shares in Orica have been spiralling upwards this month, gaining nearly 27% in the process.

This impressive 1-month move follows Orica releasing a trading update at the end of September. In the update, the company highlighted it expects significant items of between $345 million to $370 million to impact FY21 profits.

On 30 September, non-executive director Denise Gibson decided to load up on Orica shares on the back of the abovementioned announcement. The reported notice indicates that Gibson acquired 10,000 shares in the ASX company at a total value of ~A$136,700.

The post Here are 3 ASX shares insiders have been buying recently appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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What happened

The Facebook (NASDAQ: FB) share price took off overnight (Thursday afternoon in the United States), rising 3.6% as of 3.10pm EDT after the company made a big announcement that up till now had only been rumoured.

Pretty soon, Facebook won’t be ‘Facebook’ anymore. It’ll be ‘Meta’ instead.

So what

You heard that right. The company that basically defined the concept of “the social network” (I hear they even made a movie about it) is pivoting away from plain vanilla social media and forging ahead in a new direction, entering the metaverse.

So what exactly is a metaverse? As the company explained:  

The metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world. 

It will let you share immersive experiences with other people even when you can’t be together — and do things together you couldn’t do in the physical world. [And] it’s the next evolution in a long line of social technologies…

And while no one company actually has a metaverse up and operational just yet, Facebook has decided that it will be the first, and dominate this new frontier.

Now what

Give Facebook credit: For a company that has done so exceedingly well as a social media company, growing basically tenfold in value from its May 2012 IPO up until its recent “Facebook Files” troubles, Facebook isn’t being one bit shy in its commitment to its new business model.

Not only does Facebook plan to build a metaverse, and not only has it committed to spending $10 billion on the effort this year alone. Facebook is so committed to this venture that it is changing its name to Meta, changing its corporate logo, and committing to put all of “Facebook’s apps and technologies under [this] one new company brand”.

It’s a bold move, and judging by how the Facebook share price was moving this afternoon, it’s a move investors approve of.

The post Why the Facebook share price popped overnight appeared first on The Motley Fool Australia.

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The National Australia Bank Ltd (ASX: NAB) share price is trading lower on Friday following the release of an announcement.

In morning trade, the banking giant’s shares are down 0.5% to $29.29.

What did NAB announce?

Last week NAB announced the appointment of James Spenceley as a Non-Executive Director effective from 1 December. This was then to be voted on by shareholders at its annual general meeting on 17 December.

The bank highlighted that Mr Spenceley is a successful businessman, entrepreneur and venture capital investor who would bring important experience and different perspectives to the NAB Board.

He is the founder and former CEO of Vocus Communications, the Chair of Airtasker Limited (ASX: ART) and Swoop Holdings Limited (ASX: SWP), and a Non-Executive Director on the boards of Kogan.com (ASX: KGN) and Think Childcare Limited (ASX: TNK).

However, this appointment received some very negative press coverage and appears to have attracted the attention of proxy advisers.

What’s the latest?

This morning NAB Chair Philip Chronican revealed that Mr Spenceley has decided not to proceed with his appointment as a NAB Non-Executive Director.

Mr Chronican advised that the decision was made after Spenceley reconsidered his overall commitments after feedback was received from proxy advisors as well as a number of NAB investors.

He explained: “James was selected to bring diversity of experience to the NAB Board and his interest in market transformation. He has advised that he does not want his appointment and other commitments to cause concern for NAB or his other business positions.”

“We accept his decision and will consider other candidates for the Board in due course, taking into account the need for Board renewal and breadth of experience,” Chronican added.

Mr Spenceley added: “I have received feedback from proxy advisors on the impact of a large Board role on their ability to recommend my election at NAB and my other board positions. I appreciated the NAB opportunity and while I was comfortable with my capacity, I do not want to disrupt NAB, its shareholders or any company I am involved with.”

The post NAB (ASX:NAB) share price lower following director announcement appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ResMed Inc. (ASX: RMD) share price is on the move on Friday morning.

At the time of writing, the sleep treatment focused medical device company’s shares are up 7.5% to $38.41.

This means the ResMed share price is now 40% in 2021.

Why is the ResMed share price rising?

Investors have been bidding the ResMed share price higher this morning following the release of its first quarter update. Here’s a summary of how it performed:

• Revenue increased 20% over the prior corresponding period to US$904 million (19% on a constant currency basis)
• Gross margin down 230 basis points to 56%
• Income from operations increased 21% to US$261.9 million
• Net income up 14% to US$203.6 million
• Diluted earnings per share up 14% to US$1.39

What happened during the quarter?

For the three months ended 30 September, ResMed reported a 20% increase in revenue to US$904 million. This was driven by strong demand for its sleep and respiratory care devices and increased demand following a recent product recall by one of its competitors. This was partially offset by decreased COVID-19 related demand for ventilators.

This top line result was ahead of the market consensus estimate of revenue of ~US$860 million.

One slight disappointment was its softening gross margin. Management advised that this decreased by 230 basis points due to higher manufacturing costs, incremental freight costs, and lower average selling prices.

Nevertheless, this didn’t stop ResMed from beating the market’s earnings expectations during the quarter. ResMed reported GAAP earnings per share of US$1.39 per share for the period, up 14% on the prior corresponding period. This was 15 cents per share ahead of the market consensus estimate. Which goes some way to explaining why the ResMed share price is performing so positively today.

Management commentary

ResMed’s CEO, Mick Farrell, was pleased with the company’s performance during the first quarter.

He said: “Our first-quarter results demonstrate strong performance across our business with double-digit growth in both topline and bottom-line metrics, driven by ongoing high demand for our sleep and respiratory care products, and steady growth across our software-as-a-service business,”

“It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components. As we navigate supply limitations and are forced to allocate products, we continue to ensure priority for highest-acuity and highest-need patients first, as well as working with physicians, providers, and community systems to maintain a sustainable flow of medical devices and digital health solutions to patients who need care.”

Mr Farrell appears positive on the company’s long term prospects.

He commented: “Despite constantly evolving market dynamics, we continue to pivot to meet the needs of our stakeholders, driving sustainable long-term growth, and ensuring that we are investing strongly in medical device research and development, as well as digital health innovation that will unlock value for all of our customers. I’m incredibly proud of our global teams that are working with providers and physicians in the most unusual times across 140 countries, to get products directly into the hands of patients who need our solutions most.”

No guidance was provided for the remainder of the half or full year.

The post ResMed (ASX:RMD) share price jumps 7% on Q1 earnings beat appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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