Masimo Corp. (MASI - Free Report) reported earnings of 83 cents per share in the second quarter of 2017, outperforming the Zacks Consensus Estimate of 71 cents. The bottom line also improved from the year-ago earnings of 49 cents.
Revenues improved 11.8% to $192.9 million from $172.6 million in the year-ago quarter and beat the Zacks Consensus Estimate of $189.0 million.
Quarter Details
Worldwide direct product revenues (87.7% of product revenue) increased 13.8% to $160.3 million. OEM sales (12.3% of product revenues) declined 5.4% to $22.4 million from the year-ago quarter. Total U.S. product revenue decreased 5.0% to $126.5 million on a year-over-year basis.
The company’s Rainbow product revenues in the reported quarter totaled $17.1 million, which was up 14.6% on a year-over-year basis. During the quarter under review, Masimo shipped approximately 50,000 SET Pulse Oximeters and Rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base was 1,545,000 units, as of Jul 1, up 5.9% from 1,459,000 units as of Jul 2, 2016.
Financial Condition
As of Jul 1, Masimo’s total cash and cash investments were $331.4 million compared with $306.0 million as of Dec 31, 2016. The company generated $14.4 million in cash from operations and received $48.2 million in proceeds from stock option exercises.
Guidance
Masimo now expects total fiscal 2017 revenues of approximately $769.0 million, up from the previously provided guidance of $759.0 million. Total fiscal 2017 product revenues are projected at approximately $736.0 million, up from the previous guidance of $727.0 million. Royalty revenues projections increased to approximately $33.0 million from the previously provided guidance of $32.0 million. Fiscal 2017 earnings per diluted share are expected to be approximately $2.80, up from $2.65.
Zacks Rank & Stocks to Consider
Masimo has a Zacks Rank #3 (Hold).
Better-ranked medical stocks include Edwards Lifesciences Corporation (EW - Free Report) , Abiomed Inc. and Fresenius Medical Care Corporation (FMS - Free Report) . Fresenius Medical Care and Edwards Lifesciences sport a Zacks Rank #1 (Strong Buy), while Abiomed has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has a one-year return of 1.5%.
Abiomed delivered a strong return of 23.4% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Fresenius Medical Care represents a return of 2.5% over the last one year. The company delivered a solid earnings surprise of 20.5% in the last reported quarter.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Masimo Corp. (MASI - Free Report) reported earnings of 83 cents per share in the second quarter of 2017, outperforming the Zacks Consensus Estimate of 71 cents. The bottom line also improved from the year-ago earnings of 49 cents.
Revenues improved 11.8% to $192.9 million from $172.6 million in the year-ago quarter and beat the Zacks Consensus Estimate of $189.0 million.
Quarter Details
Worldwide direct product revenues (87.7% of product revenue) increased 13.8% to $160.3 million. OEM sales (12.3% of product revenues) declined 5.4% to $22.4 million from the year-ago quarter. Total U.S. product revenue decreased 5.0% to $126.5 million on a year-over-year basis.
The company’s Rainbow product revenues in the reported quarter totaled $17.1 million, which was up 14.6% on a year-over-year basis. During the quarter under review, Masimo shipped approximately 50,000 SET Pulse Oximeters and Rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base was 1,545,000 units, as of Jul 1, up 5.9% from 1,459,000 units as of Jul 2, 2016.
Financial Condition
As of Jul 1, Masimo’s total cash and cash investments were $331.4 million compared with $306.0 million as of Dec 31, 2016. The company generated $14.4 million in cash from operations and received $48.2 million in proceeds from stock option exercises.
Guidance
Masimo now expects total fiscal 2017 revenues of approximately $769.0 million, up from the previously provided guidance of $759.0 million. Total fiscal 2017 product revenues are projected at approximately $736.0 million, up from the previous guidance of $727.0 million. Royalty revenues projections increased to approximately $33.0 million from the previously provided guidance of $32.0 million. Fiscal 2017 earnings per diluted share are expected to be approximately $2.80, up from $2.65.
Zacks Rank & Stocks to Consider
Masimo has a Zacks Rank #3 (Hold).
Better-ranked medical stocks include Edwards Lifesciences Corporation (EW - Free Report) , Abiomed Inc. and Fresenius Medical Care Corporation (FMS - Free Report) . Fresenius Medical Care and Edwards Lifesciences sport a Zacks Rank #1 (Strong Buy), while Abiomed has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has a one-year return of 1.5%.
Abiomed delivered a strong return of 23.4% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Fresenius Medical Care represents a return of 2.5% over the last one year. The company delivered a solid earnings surprise of 20.5% in the last reported quarter.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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