Resmed (ASX:RMD) shares are in a slump, dropping as much as 14% to A$30.69, threatening their worst performance day since March 23, 2020, if the losses persist.

The medical equipment manufacturing company announced a decrease in its quarterly gross margin, brought on by an unfavourable product mix and increasing component and manufacturing costs.

This contraction in gross margin led to adjusted earnings per share settling at 160 cents, which is 5% lower than Visible Alpha consensus of 168 cents, as stated by Citi.

Despite this, Resmed posted a 23% increase in revenue up to $1.1 billion, thanks to rising demand for their sleep and respiratory care devices.

There’s considerable action in terms of share movements as approximately 7.1 million shares have been traded, which is 5.8 times the 30-day average volume of about 1.2 million shares.

The shares hit their lowest in more than a year.

Yet, the Resmed stock has seen an approximately 9.3% rise this year, as of the last closing.

Resmed is a medical equipment manufacturing company specializing in sleep and respiratory care devices.