Five investment banks have released first reads research on RMD post 2Q24 results overnight

@mikebrisy's writeup very comprehensively and eloquently covers the thoughts already, including the previously hinted mindbending prospect that GLP-1's may actually be a tailwind and not a headwind

Again FWIW here are some snippets from each of the reports:

RBC:

NYSE: RMD | USD 174.97 | Sector Perform | Price Target USD 181.00

Sentiment: Positive

Our view: RMD delivered a good operational result with revenue and gross profit (non-GAAP) coming in 1% and 3% respectively ahead of consensus expectations. Operating expenses came in slightly lower which led to a 6% beat at non-GAAP income from operations. Reported earnings were lower than expectations as the company incurred $64m of restructuring costs and $6m of costs associated with the masks & magnets safety notification. Device revenues in both the Americas and RoW exceeded consensus numbers, while Masks & Accessories in both the Americas and RoW were a slight miss. We expect the stock price to be well supported given the solid sales growth and improvement in gross margins during this quarter

UBS:

Neutral, 12m PT USD $175

Overall we think the result will be interpreted positively given the focus on core gross margin. Reported gross margin fell due to costs associated with the widely discussed masks/magnets recall (label change). We perhaps expect some questions from investors around a miss in masks if devices continue to do well, and wonder to what degree the beat for devices can be linked to the "GLP-1 funnel augmentation" thesis

GS:

Buy, 12m PT AUD $32

Solid +4-6% earnings beat as US device growth normalises and GM recovery continues

2Q revenue growth of +11%, +2% vs. cons, as US device growth recovers after 1Q blip

EBIT/EPS beat +6%/+4% as gross margins improved further in 2Q (+90bps) and SG&A intensity declines once more

No guidance as typical; core debates remain: 1) competitor challenges, including timing/outcome of consent decree; 2) GLP-1 risk; 3) gross margin trajectory

JPM:

Overweight, PT USD $195

Key positives: Gross margin up 90bps sequentially. Device sales the surprise strength. Buyback started this quarter at $50m which is earlier than expected

Key negatives: Mask growth slightly weaker than we had expected. Restructuring costs higher

Expected share price reaction. Mid single digit share price increase

MS:

Overweight, PT AUD $28.60

Top line was a small beat with strength in US devices offsetting weakness in masks. Non-GAAP GP margin + 90bps to 56.9% sequentially (60bps above Street) – improvement in freight and favourable currency offset by higher component cost and neg. mix. Non-GAAP includes adj. of US$64m relating to restructuring charges and A$6m relating to the mask recall, resulting in GAAP-GP of 55.6%. The strength in margins delivered a strong beat on the bottom line with diluted EPS +13% to US$1.88 (+5% Street, -1% MSe)

We were concerned about some downside risk to US device sales growth due to the 2% growth in prev. Q, however, it was a beat (+2% MSe; +3% Street) at 8% growth. International device sales growth also positively surprised at 19% growth

Mask sales growth was a disappointment where we may have overestimated the benefit from the expanded installed base. US mask sales -6% MSe and -2% Cons, at 11% growth. International mask sales -5% MSe and -1% Cons, at 9% growth

DISC: Small position Held in RL & SM