ResMed's (RMD) fiscal Q3 is likely to meet consensus estimates, but the company is facing potential supply chain disruption risks due to US tariffs, UBS said in a Wednesday note.
UBS estimates fiscal Q3 revenue of $1.28 billion and a core gross margin of roughly 60%, both in line with Visible Alpha consensus. It also estimates core earnings of $2.32 per share, which is slightly below the consensus, according to the note.
The brokerage said it forecasts a roughly 1% negative near-term impact on EPS due to tariffs and is "mindful" of freight costs and their potential impact on the company's gross margins.
ResMed will report its fiscal Q3 financial results on April 23.
UBS said ResMed is working to lift gross margins above 60%, and it sees "core gross margin back at that level in FY25, which is more optimistic than the consensus expectation of FY26."
UBS maintained its buy rating on the stock and 12-month price target of $290 per share.
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