Resmed 1QFY15 earnings summary

Resmed 1QFY15 underlying earnings were in line with expectations, with another quarter of double-digit sales growth, underpinned by strong US flow generator uptake and continued strength in masks beating market growth rates. While ROW sales continue to be impacted by disappointing SERVE-HF trial results, the impact remains ring-fenced and failed to detract from market-tracking growth across product categories and robust sales in APAC. We remain confident 1Q marks the earnings nadir, with momentum increase throughout the year as the pricing environment is stable, cost-out initiatives take hold, FX headwinds abate and the value-enhancing healthcare informatics platform continues to drive channel efficiencies. (RMD, Add, Price Target A$8.86)