ResMed shares drop more than 3% after strong Q4 earnings and MatrixCare divestiture

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ResMed slides 3.28% today on earnings

Highlights

ResMed stock posted non-GAAP EPS of $2.95 for the fiscal fourth quarter, surpassing estimates with 16% year-over-year growth.
Quarterly revenue rose 8.6% to $1.46 billion, slightly below expectations, as the company finalized the MatrixCare divestment and named a new CEO.
Shares trade above key moving averages with bullish momentum, but session pressure and overbought signals point to a $224.09 to $236.75 range in the next five days.

Strong EPS growth offset as revenue misses analyst forecasts

ResMed posted non-GAAP EPS of $2.95 for its fiscal fourth quarter, which exceeded estimates and marked a 16% increase year-over-year. Revenue for the quarter reached $1.46 billion, up 8.6% from the prior year but falling slightly short of forecasts. Additional corporate actions included the completed sale of the MatrixCare business and the appointment of Jonathan Lujan as MatrixCare CEO, with increased holdings reported by institutional investors, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, views the recent price drop in ResMed as a warning sign. He notes that while earnings and institutional flows are supportive, the lack of revenue beat and the quick post-news selloff signal risk. Kharitonov sees strong technical momentum, but overbought oscillators and a potential resistance at $236.75 restrict upside. He remains wary of current sentiment shifting negative, especially if the price tests support below $228.76. "Despite bullish technicals, I'm concerned about exhaustion and recommend caution until momentum resets," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, emphasizes the constructive outlook for ResMed. He highlights robust earnings growth, increased institutional involvement, and the successful divestiture as clear positives. Karapetjanc notes that the bullish structure remains intact above key moving averages and sees strong buying conviction in momentum indicators. Forward-looking, he expects further growth and multiple entry setups should consolidation resolve higher. "With technicals and fundamentals aligned, I see market confidence deepening and anticipate renewed upside soon," he says.

Sholanke Dele, market strategist, is skeptical about ResMed’s rally. He points out the recent slide and inability of strong earnings to drive sustained gains. Dele questions whether sentiment can stay positive given overbought signals and recent volatility. Macro factors may also limit further upside momentum. "This move looks overextended — I’m not convinced the bulls can hold these levels without a reset," Dele states.

Bullish momentum challenged as technicals signal overbought risk

ResMed trades above all major moving averages, with its current price at $232.22 sitting atop the 20-day ($227.81), 50-day ($212.38), and 200-day ($228.76) levels, reflecting sustained bullish momentum over both short- and long-term trends. Immediate support is identified at the 200-day moving average ($228.76), with the session's low at $232.32 forming a near-term resistance ceiling. Momentum remains elevated, highlighted by a MACD at 9.79 signaling a buy and an RSI of 68.67 showing strong buying interest. However, oscillators including Stochastic RSI, CCI, and BBP (9.87) all indicate overbought conditions, while the Awesome Oscillator confirms underlying bullish sentiment. Despite a 3.28% drop today after an intraday downside gap and volatility of 4.31%, momentum indicators underscore the divergence between recent surge exhaustion and the prevailing positive trend structure.

In a recent review, analysts noted that ResMed’s prior earnings-driven rally signaled improving fundamentals but was constrained by longer-term technical resistance. The current technical setup, marked by strong momentum despite today’s pullback, suggests traders should monitor the $236.75 resistance for a potential breakout, with consolidation near current levels remaining the baseline scenario.

Source of Data: RMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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