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Masimo (MASI) Beats on Q1 Earnings and Revenues, Guides Up

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Masimo Corp. (MASI - Free Report) reported earnings of 57 cents per share in the first quarter of 2017 outperforming the Zacks Consensus Estimate of 54 cents. The bottom line also improved from the year-ago earnings of 53 cents.

Revenues improved 8.8% to $186.3 million from $171.2 million in the year-ago quarter and beat the Zacks Consensus Estimate of $184.0 million.

Stock Performance

Year to date, Masimo’s shares have increased roughly 26.32%, comparing favorably with the Zacks categorized Medical Instruments’ sub-industry’s addition of 12.97%. The current level is higher than the S&P 500’s return of 8.88% in the same time frame.

Quarter Details

Worldwide direct product revenues (87.0% of product revenue) increased 9.9% to $178.1 million. OEM sales (13.0% of product revenues) rose 3.7% to $23.2 million from the year-ago quarter. Total U.S. product revenue increased 9.8% to $124.7 million on a year-over-year basis.

The company’s Rainbow product revenues in the reported quarter totaled $13.9 million, which was down 17.8% on a year-over-year basis. Meanwhile, total hemoglobin revenues were $2.8 million in the quarter, down from $6.1 million in the prior-year period. However, Masimo witnessed a 30% gain in the sales of U.S. single-use rainbow adhesive sensors on a year-over-year basis.

During the reported quarter, the company shipped approximately 47,900 SET Pulse Oximeters and Rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base was 1,525,000 units, up 6.1% from 1,438,000 units as of Apr 2, 2016.
 

Masimo Corporation Price, Consensus and EPS Surprise

 

Masimo Corporation Price, Consensus and EPS Surprise | Masimo Corporation Quote

Financial Condition

As of Apr 1, 2017, Masimo’s total cash and cash investments were $343.8 million compared with $306 million as of Dec 31, 2016. The company generated $15.4 million in cash from operations and received $27.3 million in proceeds from stock option exercises.

Guidance

Masimo now expects total fiscal 2017 revenues of approximately $759.0 million, up from the previously provided guidance of $752.0 million. Total fiscal 2017 product revenues are projected at approximately $727.0 million, up from the previous guidance of $721.0 million. Royalty revenues projections increased to approximately $32.0 million from the previously provided guidance of $31.0 million. Fiscal 2017 earnings per diluted share are expected to be approximately $2.65, up from $2.30.

Zacks Rank & Stocks to Consider

Masimo has a Zacks Rank #3 (Hold).

Better-ranked medical stocks include Regeneron Pharmaceuticals, Inc. (REGN - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Baxter International Inc. (BAX - Free Report) . Regeneron Pharmaceuticals and Bio-Rad Laboratories sport a Zacks Rank #1 (Strong Buy), while Baxter International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Regeneron Pharmaceuticals has increased 18% in the last one year, compared with the S&P 500’s 16.0% gain. It has a trailing four-quarter average positive earnings surprise of 0.45%.

Bio-Rad Laboratories has surged 55.7% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 13.10%.

Baxter International has returned 23.1% in the last one year in comparison to the S&P 500. It has a four-quarter average positive earnings surprise of 17.14%.

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