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Masimo (MASI) Beats on Q3 Earnings, Revenues; Guides Up
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Masimo Corp. (MASI - Free Report) reported earnings of 47 cents per share in the third quarter of 2016, which increased from 36 cents in the year-ago quarter. The figure also came above the Zacks Consensus Estimate of 42 cents.
Revenues improved almost 9.9% year over year to $167.6 million, well ahead of the Zacks Consensus Estimate of $166 million. We note that product revenues increased 10.8% to $160.3 million in the quarter.
Worldwide direct product revenues (85.7% of product revenues) increased 14.3% to $137.4 million. OEM sales (14.3% of product revenues) fell 6.1% to $22.9 million from the year-earlier quarter. Revenue from sales of Masimo rainbow products rose 5.0% year over year to $18.0 million.
During the reported quarter, the company shipped approximately 45,800 SET Pulse Oximeters and rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base as of Oct 1, 2016 was 1,482,000 units, up 6.6% from 1,390,000 units as of Oct 3, 2015.
Financial Condition
As of Oct 1, 2016, total cash and cash investments were $126.0 million compared with $132.3 million as of Jan 2, 2016. During the nine-month period ending Oct 1, 2016, the company generated $87.8 million in cash from operations and received $26.1 million in proceeds from stock option exercises. During the same nine-month period, the company repurchased 1.5 million shares at a total cost of $63.4 million and made $77.5 million in repayments on the company’s line-of-credit.
Guidance
For 2016, Masimo raised the total revenue guidance to approximately $692 million from $689 million expected previously.
Product revenues are expected at around $661 million, up from the previous guidance of $658 million. Meanwhile, Royalty revenue projection was raised to $31 million from the previous $30 million.
Masimo now projects earnings of $2.13 per share, up from the earlier projected figure of $2.01.
Better-ranked stocks in the broader medical space include Cardiovascular Systems Inc. , Exelixis, Inc. (EXEL - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, Exelis and Cardiovascular systems sport a Zacks Rank #2 (Buy). However, IDEXX has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems represents a stellar one-year return of 52.8%. Notably, the company has an expected long-term growth rate of 22.5%.
Exelis has a stupendous one-year return of almost 94%. In the last reported quarter, the company registered an impressive earnings surprise of 40.74%.
IDEXX Laboratories represents a promising one-year return of 50.23%. The company has a long-term expected growth rate of almost 14.8%.
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Masimo (MASI) Beats on Q3 Earnings, Revenues; Guides Up
Masimo Corp. (MASI - Free Report) reported earnings of 47 cents per share in the third quarter of 2016, which increased from 36 cents in the year-ago quarter. The figure also came above the Zacks Consensus Estimate of 42 cents.
Revenues improved almost 9.9% year over year to $167.6 million, well ahead of the Zacks Consensus Estimate of $166 million. We note that product revenues increased 10.8% to $160.3 million in the quarter.
Quarter Details
Worldwide direct product revenues (85.7% of product revenues) increased 14.3% to $137.4 million. OEM sales (14.3% of product revenues) fell 6.1% to $22.9 million from the year-earlier quarter. Revenue from sales of Masimo rainbow products rose 5.0% year over year to $18.0 million.
During the reported quarter, the company shipped approximately 45,800 SET Pulse Oximeters and rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base as of Oct 1, 2016 was 1,482,000 units, up 6.6% from 1,390,000 units as of Oct 3, 2015.
Financial Condition
As of Oct 1, 2016, total cash and cash investments were $126.0 million compared with $132.3 million as of Jan 2, 2016. During the nine-month period ending Oct 1, 2016, the company generated $87.8 million in cash from operations and received $26.1 million in proceeds from stock option exercises. During the same nine-month period, the company repurchased 1.5 million shares at a total cost of $63.4 million and made $77.5 million in repayments on the company’s line-of-credit.
Guidance
For 2016, Masimo raised the total revenue guidance to approximately $692 million from $689 million expected previously.
Product revenues are expected at around $661 million, up from the previous guidance of $658 million. Meanwhile, Royalty revenue projection was raised to $31 million from the previous $30 million.
Masimo now projects earnings of $2.13 per share, up from the earlier projected figure of $2.01.
MASIMO CORP Price, Consensus and EPS Surprise
MASIMO CORP Price, Consensus and EPS Surprise | MASIMO CORP Quote
Zacks Rank and Other Key Picks
Currently, Masimo carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical space include Cardiovascular Systems Inc. , Exelixis, Inc. (EXEL - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, Exelis and Cardiovascular systems sport a Zacks Rank #2 (Buy). However, IDEXX has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardiovascular Systems represents a stellar one-year return of 52.8%. Notably, the company has an expected long-term growth rate of 22.5%.
Exelis has a stupendous one-year return of almost 94%. In the last reported quarter, the company registered an impressive earnings surprise of 40.74%.
IDEXX Laboratories represents a promising one-year return of 50.23%. The company has a long-term expected growth rate of almost 14.8%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>