Stocks of the Hour: ResMed, Ramsay Health Care & Reliance Worldwide

Company News

by Lauren Evans

ResMed (ASX:RMD) increased its revenue by 12 per cent during the March quarter, driven by strong demand in its sleep and respiratory care segment. However, its gross margin decreased by 140 basis points mainly due to higher freight and manufacturing costs, partially offset by favourable product changes and increased selling prices. Shares are trading 6.3 per cent lower at $28.48.

Ramsay Health Care (ASX:RHC) posted a 59 per cent drop in profit after tax during the March quarter as Covid-related issues and higher operating costs continued to impact the healthcare system. However, its revenue lifted 5.7 per cent during the quarter as activity levels started to improve after elective surgery restrictions were lifted in Australia. Shares are trading 0.7 per cent lower at $81.01.

Meanwhile, Reliance Worldwide (ASX:RWC) reported a 14 per cent increase in sales during the nine months to March 31 after it increased prices in all regions to offset cost pressures. However, its adjusted EBITDA fell 4 per cent from the prior year period as the company dealt with higher inflation, particularly in copper and steel, as well as shipping pressures and rising energy costs. Shares are trading 1.3 per cent higher at $4.06.

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