The Resmed CDI (ASX: RMD) share price is down around 3.5% at $33.42 in afternoon trading. This comes after the US-based sleep apnoea medical device company released its full-year results to the ASX this morning.
As my colleague James wrote, ResMed Inc (NYSE: RMD) booked a 12% increase in revenue year over year to US$3.6 billion. It finished the year with an underlying net profit of US$850.8 million, up 9% on FY21.
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Revenue and profits up
As James points out, ResMed's underlying net profit was slightly above market consensus expectations of US$825.6 million.
A recall by competitor Royal Philips in June 2021 provided a revenue boost for ResMed in FY22.
Management estimates that US$60 million to US$70 million in incremental fourth-quarter revenue was related to the recall. That implies an annual total of US$220 million to US$260 million.
Inflation started to bite in FY22, with higher freight and manufacturing costs impacting margins.
Over FY22, the Resmed share price slipped by about 7%.
Resmed dividends up
ResMed declared a final quarterly cash dividend of 44 US cents, up 5% on the prior corresponding period. But that's what ResMed Inc shareholders (owners of the NYSE-listed shares) will get. It's different for ASX shareholders, who own Resmed CDI shares.
Remember ResMed is a US-domiciled company listed on the New York Stock Exchange. The Resmed shares listed on the ASX are CHESS depositary interests (CDIs) which "confer a beneficial interest in the underlying financial product to which it relates", explains the ASX.
This beneficial interest is on a ratio of 10:1 for owners of the ASX shares. So, Resmed CDI shareholders will receive 4.4 US cents per share as dividends. This currently converts to 6.2 cents in Australian currency. The payment date is 22 September.
So, why is the Resmed share price down?
The company exceeded consensus profit expectations, and it's going to pay a higher dividend this year. So why is the Resmed share price down?
Well, the dip might not have anything to do with investors' reactions to the results. The market as a whole is down today.
The S&P/ASX 200 Index (ASX: XJO) is off 0.73% and the S&P/ASX 200 Health Care Index (ASX: XHJ) is down 1.81%.
In fact, healthcare is the second worst performing sector today behind the S&P/ASX 200 A-REIT Index (ASX: XPJ), which is down 1.87%. The only sectors in the green are energy and communications.
So, it might simply be a case of the Resmed share price being dragged down, along with many other ASX healthcare shares, by the broader sector and market today.
