We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Masimo (MASI) Beats on Q1 Earnings, Raises '18 Guidance
Read MoreHide Full Article
Masimo Corporation((MASI - Free Report) ) reported adjusted earnings of 75 cents per share in the first quarter of 2018, outperforming the Zacks Consensus Estimate of 70 cents. The bottom line improved from the year-ago quarter’s figure of 65 cents. The stock has a Zacks Rank #2 (Buy).
Revenues improved 8.3% to $213 million from $196.6 million in the year-ago quarter and beat the Zacks Consensus Estimate of $206 million.
Segmental Analysis
Product Revenues
Product revenues delivered another strong quarter of double-digit growth. Product revenues were $204.4 million for the quarter, up 12% year over year.
Product revenues also witnessed impressive growth in overseas markets. New products, including NomoLine capnography, rainbow noninvasive blood constituents monitoring, SedLine Brain Function Monitoring and O3 organ oximetry, contributed to the result.
The company’s worldwide direct product revenues (87.5% of total product revenues) increased to $178.9 million in the first quarter of 2018.
OEM sales (12.5% of total product revenues) increased to $25.5 million in the first quarter of 2018.
Notably, in January, Masimo received CE mark for its RD rainbow Lite SET sensors, which enables the use of Oxygen Reserve Index and RPVi. Per management, this is an improved rainbow-based version of PVi, but is less costly than the rainbow sensors.
Masimo Corporation Price, Consensus and EPS Surprise
First-quarter royalties and other revenues fell to $8.6 million from $14.2 million in the prior-year quarter.
Margin Analysis
Total gross profit in the first quarter was $143.6 million, up 8.5% year over year. Gross margin was 67.5% of net revenues, up 20 basis points (bps) year over year.
Product gross margin expanded 70 bps to 66.2% of net revenues.
Guidance
For 2018, revenues are estimated at $846 million, up from the previous projection of $836 million. The Zacks Consensus Estimate for 2018 revenues is pegged at $836.4 million, significantly lower than the guided figure.
Total 2018 product revenues are estimated at $818, up from previously issued guidance of $808 million.
Royalty and other revenues are estimated at around $28 million.
Adjusted earnings per share for 2018 are expected at $2.88, up from the previous guidance of $2.80. The Zacks Consensus Estimate for 2018 adjusted earnings at $2.81, significantly lower than the guided estimate.
In Conclusion
Masimo exited the first quarter on a strong note beating the consensus mark on both counts. A solid guidance for 2018 raises investors’ optimism on the stock. The company has been gaining on strong segmental revenues and improving product revenue margins. An expanding product portfolio and wider adoption of its non-invasive patient monitoring technology are major catalysts. Masimo’s SET pulse oximetry business represents considerable growth opportunities in international markets. Moreover, Masimo received some noteworthy CE and FDA clearances during the quarter, including a clearance for domestic use of the new Rad-97 telehealth monitor with two-way audio and video capabilities.
On the flip side, lackluster performance in royalties and other revenue unit is a concern. Furthermore, the company faces fierce competition from OEM distributors and medical devices bigwigs that might mar the top line over the long haul.
Q1 Earnings of MedTech Majors at a Glance
A few other top-ranked stocks in the broader medical space, which reported solid earnings this season are Intuitive Surgical, Inc. (ISRG - Free Report) , Varian Medical Systems, Inc. and Baxter International Inc. (BAX - Free Report) .
Intuitive Surgical reported adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, which beat the Zacks Consensus Estimate by 10.6%.
Varian reported second-quarter fiscal 2018 adjusted earnings of $1.15 per share, which beat the Zacks Consensus Estimate of $1.06. Adjusted earnings improved 27.8% on a year-over-year basis.
Baxter reported first-quarter 2018 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate by 12.9% and improved from the year-ago quarter’s figure of 58 cents.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Masimo (MASI) Beats on Q1 Earnings, Raises '18 Guidance
Masimo Corporation ((MASI - Free Report) ) reported adjusted earnings of 75 cents per share in the first quarter of 2018, outperforming the Zacks Consensus Estimate of 70 cents. The bottom line improved from the year-ago quarter’s figure of 65 cents. The stock has a Zacks Rank #2 (Buy).
Revenues improved 8.3% to $213 million from $196.6 million in the year-ago quarter and beat the Zacks Consensus Estimate of $206 million.
Segmental Analysis
Product Revenues
Product revenues delivered another strong quarter of double-digit growth. Product revenues were $204.4 million for the quarter, up 12% year over year.
Product revenues also witnessed impressive growth in overseas markets. New products, including NomoLine capnography, rainbow noninvasive blood constituents monitoring, SedLine Brain Function Monitoring and O3 organ oximetry, contributed to the result.
The company’s worldwide direct product revenues (87.5% of total product revenues) increased to $178.9 million in the first quarter of 2018.
OEM sales (12.5% of total product revenues) increased to $25.5 million in the first quarter of 2018.
Notably, in January, Masimo received CE mark for its RD rainbow Lite SET sensors, which enables the use of Oxygen Reserve Index and RPVi. Per management, this is an improved rainbow-based version of PVi, but is less costly than the rainbow sensors.
Masimo Corporation Price, Consensus and EPS Surprise
Masimo Corporation Price, Consensus and EPS Surprise | Masimo Corporation Quote
Royalty and Other Revenues
First-quarter royalties and other revenues fell to $8.6 million from $14.2 million in the prior-year quarter.
Margin Analysis
Total gross profit in the first quarter was $143.6 million, up 8.5% year over year. Gross margin was 67.5% of net revenues, up 20 basis points (bps) year over year.
Product gross margin expanded 70 bps to 66.2% of net revenues.
Guidance
For 2018, revenues are estimated at $846 million, up from the previous projection of $836 million. The Zacks Consensus Estimate for 2018 revenues is pegged at $836.4 million, significantly lower than the guided figure.
Total 2018 product revenues are estimated at $818, up from previously issued guidance of $808 million.
Royalty and other revenues are estimated at around $28 million.
Adjusted earnings per share for 2018 are expected at $2.88, up from the previous guidance of $2.80. The Zacks Consensus Estimate for 2018 adjusted earnings at $2.81, significantly lower than the guided estimate.
In Conclusion
Masimo exited the first quarter on a strong note beating the consensus mark on both counts. A solid guidance for 2018 raises investors’ optimism on the stock. The company has been gaining on strong segmental revenues and improving product revenue margins. An expanding product portfolio and wider adoption of its non-invasive patient monitoring technology are major catalysts. Masimo’s SET pulse oximetry business represents considerable growth opportunities in international markets. Moreover, Masimo received some noteworthy CE and FDA clearances during the quarter, including a clearance for domestic use of the new Rad-97 telehealth monitor with two-way audio and video capabilities.
On the flip side, lackluster performance in royalties and other revenue unit is a concern. Furthermore, the company faces fierce competition from OEM distributors and medical devices bigwigs that might mar the top line over the long haul.
Q1 Earnings of MedTech Majors at a Glance
A few other top-ranked stocks in the broader medical space, which reported solid earnings this season are Intuitive Surgical, Inc. (ISRG - Free Report) , Varian Medical Systems, Inc. and Baxter International Inc. (BAX - Free Report) .
While Intuitive Surgical and Varian sport a Zacks Rank #1 (Strong Buy), Baxter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, which beat the Zacks Consensus Estimate by 10.6%.
Varian reported second-quarter fiscal 2018 adjusted earnings of $1.15 per share, which beat the Zacks Consensus Estimate of $1.06. Adjusted earnings improved 27.8% on a year-over-year basis.
Baxter reported first-quarter 2018 adjusted earnings per share of 70 cents, which beat the Zacks Consensus Estimate by 12.9% and improved from the year-ago quarter’s figure of 58 cents.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>