ResMed Inc. (NYSE:RMD) was up 18% at the top of the noon hour on January 23 after releasing its fiscal 2018 second quarter results. ResMed is a San Diego-based manufacturer of CPAP masks, machines, and other products that treat sleep-disordered breathing. Shares have climbed 63% year over year.
In the second quarter ResMed reported revenue growth of 13% year over year to $601.3 million on a constant currency basis. Revenue in the United States, Canada, and Latin America was up 12% and in Europe, Asia, and other markets it rose 8%. ResMed also announced the launch of a portable oxygen concentrator called Mobi that will appear in the third quarter. The company declared a quarterly dividend of $0.35 per share representing a 1.3% dividend yield.
ResMed also gave an analysis of its situation following U.S. tax reform. The company will incur a one-time transition tax on unremitted foreign earnings that comes to $119.9 million. Corporate tax rates were lowered from 35% to 21% due to the Tax Cuts and Jobs Act. The repatriation tax has resulted in a one-time charge for a number of large U.S. corporations, but over the long haul the lower rates are expected to generate trillions in revenue in the U.S. over the next decade.
ResMed has posted impressive global growth and provides a solid dividend. It remains a long-term buy and hold and will likely reap rewards from the lower corporate tax rate in years to come.
