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Masimo (MASI) Earnings and Revenues Beat Estimates in Q1

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Masimo Corporation (MASI - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of 90 cents, which surpassed the Zacks Consensus Estimate of 88 cents by 2.3%. However, the bottom line fell 7.2% from the year-ago quarter.

Revenues

For the first quarter, total revenues (including Royalty and other revenues) improved 10.9% year over year to $299 million and beat the Zacks Consensus Estimate by 0.3% as well.

Segmental Analysis

Product Revenues

Product revenues in the first quarter totaled $299 million, up 10.9% from the year-ago quarter and 9.5% in constant currency (cc).

Per management, shipments of non-invasive technology boards and instruments (excluding handheld and fingertip pulse oximeters) fell 8.3% to 66,000 in the quarter.

Margin Analysis

In the quarter under review, gross profit totaled $196.9 million, up 6.1% year over year. Gross margin was 65.8%, down 301 basis points (bps).

Total operating costs came in at $131.2 million, up 12%.

Operating profit in the quarter totaled $65.7 million, down 4.2% from the year-ago level. Operating margin contracted 345 bps to 21.9% in the quarter.

Cash Position

The company exited the first quarter of 2021 with cash and cash equivalents of $551.9 million compared with $641.4 million at the end of the fourth quarter of 2020. Net cash provided by operating activities came in at $59.3 million compared with $42.4 million in the year-ago period.

 

Masimo Corporation Price, Consensus and EPS Surprise

Masimo Corporation Price, Consensus and EPS Surprise

 

Masimo Corporation price-consensus-eps-surprise-chart | Masimo Corporation Quote

 

2021 Guidance

Total revenues are projected at $1.21 billion, up from the previous view of $1.20 billion. The Zacks Consensus Estimate for the metric is pegged at $1.20 billion. Adjusted EPS is projected at $3.83, up from the previous outlook of $3.80. The Zacks Consensus Estimate for the same is pegged at $3.81.

In Conclusion

Masimo exited the first quarter on a strong note. The company continues to gain from its key Product segment, which witnessed solid growth in the quarter under review. The recent launch of the Masimo Safety Net, designed to help fight the coronavirus pandemic, continues to buoy optimism. The outbreak boosted demand for the company’s products among the direct and OEM customers.

On the flip side, contraction of both margins is a concern. Masimo’s Royalty and Other segment saw no contribution during the quarter. The company’s non-invasive technology shipments also fell in the period. Further, the company faces fierce competition from the MedTech bigwigs.

Zacks Rank & Key Picks

Currently, Masimo carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are  Omnicell, Inc. (OMCL - Free Report) , LeMaitre Vascular, Inc. (LMAT - Free Report)  and DENTSPLY SIRONA Inc. (XRAY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Omnicell’s first-quarter 2021 EPS is currently pegged at 67 cents, indicating growth of 1.5% from the year-ago quarter’s reported figure. The same for revenues stands at $245.4 million, indicating growth of 6.8% from the year-earlier period’s reported number. The company currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for LeMaitre’s first-quarter 2021 revenues is pegged at $35.6 million, suggesting an improvement of 16.4% from the prior-year quarter’s reported number. The same for EPS stands at 28 cents, indicating growth of 75% from the year-ago period’s reported figure. The company currently carries a Zacks Rank of 2.

DENTSPLY SIRONA is presently Zacks #2 Ranked. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.

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