and for completeness here's Macquarie's which came out during the day

Macquarie:

Outperform, 12m PT $33.40

What's new

Revenue +2.1%/+1.2% vs MRE/VA consensus; NPAT +2.3%/+4.7%

Why it matters

• 2Q24 a beat vs MRE/VA consensus: Revenue and non-GAAP gross profit/ EBIT/NPAT all ahead of MRE/VA. Compositionally, device revenue was ~3% ahead of MRE/VA, with masks/accessories revenue +1%/-2%
• Gross margins: +10bps YoY, +90bps QoQ (+60bps/80bps vs MRE/VA) driven by lower freight and increased average selling prices (ASP), partly offset by adverse product mix. Management expect sequential improvement over 2H24, albeit with potential freight headwinds in 4Q24
• New mask launches: Regulatory and reimbursement approval has been received for a new mask offering. Launch is expected "soon"
• Restructuring initiatives: US$64.2mn of which US$28.6mn related to employee severance, US$33.2mn related to intangible asset investment write-downs (wind-up of certain business activities) and US$2.4mn from other asset impairments
• GLP-1 commentary reiterated: Patients on a GLP-1 RA are more likely to initiate PAP therapy, with higher rates of adherence and re-supply. Further, commentary indicated potential for the SURMOUNT-OSA trial to show the benefits of PAP in combination with GLP-1 RA (as opposed to substitution)
• Opex guidance: For 2H24, SG&A is expected to represent 18-20% of revenue with R&D 6-7% (initial guidance of 20-22% and 7-8%, respectively)
• Buy-back recommenced: ~US$50mn of stock bought back in 2Q24 (similar values expected over the remainder of FY24)

What now

• Outperform. On balance, a better than expected result, with our forecasts implying strong EPS growth over the balance of 2H24. Combined with valuation appeal, RMD remains a preferred sector exposure

RMD my 2c, the big news covered by Mike was the positive correlation rmd is seeing between the use of weight loss drugs and cpap usage, which could scare the shorts.

note there is an LLY study coming out re OSA and weight loss drugs, 500 people that could blur the water, but RMD using a 529k sample,

i thought it a strong result, all things considered, GM on the mend, first time i can recall + asp with roll through occurring into 4q

disc held