(Reuters) -Resmed beat Wall Street estimates for third-quarter profit on Wednesday, driven by demand for its sleep apnea devices used to manage the common sleep disorder.
The company manufactures continuous positive airway pressure (CPAP) machines, which manage the common sleep disorder by keeping airways open during sleep, significantly improving sleep quality.
Shares of the San Diego-based company rose 2.6% to $220 in after market trading.
Some analysts had expected the U.S. approval of Eli Lilly’s weight-loss drug Zepbound, which belongs to a class of drugs known as GLP-1s, to treat sleep apnea and reduce demand for the company’s devices. Resmed has shrugged off those concerns and said it expects consumer wearables tracking sleep health and GLP-1 therapies will encourage more patients to use their devices.
The company’s quarterly revenue rose 8% to $1.29 billion, in line with estimates, helped by heightened demand for its sleep devices and masks.
It posted an adjusted profit of $2.37 per share for the quarter ended March 31, compared with estimates of $2.36 per share, according to data compiled by LSEG.
(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid)
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