Resmed, (ASX:RMD)’s shares plummet around 11% to A$30.130, marking its worst single day performance since January 2019.

The company is also set up for the most significant weekly loss since August 2020.

The medical equipment manufacturer reported a drop in its Q4 gross margin attributed to an unfavorable product mix combined with higher component and manufacturing costs.

As Citi points out, these lower margins resulted in an adjusted EPS of 160 cents, falling short of the Visible Alpha consensus of 168 cents.

Nevertheless, revenues increased by 23%, driven by demand for sleep and respiratory care devices.

Jefferies states that the Q4 results were slightly below consensus estimates, and as a result, decided to lower the price target to $240.00 from the initial $252.00.

The trading volume of the company’s shares is almost six times the 30-day average, marking its busiest trading day since March 2019.

Resmed, (ASX:RMD) is a leading manufacturer of medical equipment and devices, specializing in sleep and respiratory care products.