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's (MASI) Q1 Earnings Surpass Estimates, FY22 View Up
Read MoreHide Full Article
Masimo Corporation (MASI - Free Report) delivered adjusted earnings per share (“EPS”) of 93 cents in the first quarter of 2022, up 3.3% year over year. The figure surpassed the Zacks Consensus Estimate by 1.1%.
The adjustments include acquisition, integration and related costs, among others.
GAAP EPS for the quarter was 81 cents, down by 11.9% from the year-earlier figure.
Revenues in Detail
Masimo registered revenues of $304.2 million in the first quarter, up 1.7% year over year on a reported basis. The figure also surpassed the Zacks Consensus Estimate by 3.6%.
At constant exchange rate, revenues grew by 3.2%.
Per management, shipments of non-invasive technology boards and instruments, excluding handheld and fingertip pulse oximeters, were 75,700 in the first quarter of 2022.
Masimo Corporation Price, Consensus and EPS Surprise
In the quarter under review, Masimo’s gross profit rose 4% to $204.8 million. Gross margin expanded 147 basis points (bps) to 67.3%.
Selling, general & administrative expenses climbed 12.6% to $108.9 million. Research and development expenses went up 4.7% year over year to $36.1 million. Adjusted operating expenses of $145 million increased 10.5% year over year.
Adjusted operating profit totaled $59.7 million, reflecting a 9% decline from the prior-year quarter. Adjusted operating margin in the first quarter contracted by 232 bps to 19.6%.
Financial Position
Masimo exited first-quarter 2022 with cash and cash equivalents of $720.1 million compared with $745.3 million at the end of 2021.
Net cash flow from operating activities at the end of first-quarter 2022 was $23.2 million compared with $59.3 million a year ago.
2022 Guidance
Masimo has upped its full-year 2022 financial outlook and provided projections for the second quarter.
Total revenues are now projected in the range of $2,000 million-$2,060 million, up from the earlier-provided outlook of $1,350 million, which had reflected a reported growth of 8.9%. The Zacks Consensus Estimate for the metric is currently pegged at $1.35 billion.
Adjusted EPS for 2022 is now projected to be within $4.46-$4.73, up from the previous projection of $4.34. The Zacks Consensus Estimate for the same is pegged at $4.29.
For the second quarter of 2022, Masimo expects its total revenues in the range of $525 million-$555 million. The Zacks Consensus Estimate for the metric is currently pegged at $349.6 million.
Adjusted EPS for the second quarter is projected to be within $1.13-$1.25. The Zacks Consensus Estimate for the same is pegged at $1.11.
Our Take
Masimo exited the first quarter of 2022 with better-than-expected results. Robust uptick in the top line is encouraging. The company recorded robust order shipments during the reported quarter, which is encouraging. Expansion of the company’s installed base is also impressive. The company closed the acquisition of Sound United in April and also confirmed that it will report consolidated financial results beginning in the second quarter of 2022, raising our optimism.
A slew of favorable studies on Masimo’s products and enhancement to its telehealth capabilities are also promising. Masimo confirmed that it has been witnessing a rebound in elective surgeries and better access for its sales force within hospitals as a result of the easing of pandemic-induced hospitalization concerns, which is encouraging. Expansion of gross margin bodes well for the stock. The company raising its full-year financial outlook also looks promising.
On the flip side, the company continuing to face supply chain challenges related to component shortages and limited labor availability at its manufacturing facilities is concerning. Contraction of adjusted operating margin in the quarter does not bode well. Masimo faces fierce competition from MedTech bigwigs, raising our apprehensions.
Zacks Rank & Stocks to Consider
Masimo currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. (OMCL - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Alkermes plc (ALKS - Free Report) .
Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicell has an estimated long-term growth rate of 16%. OMCL’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 13.4%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Masimo's (MASI) Q1 Earnings Surpass Estimates, FY22 View Up
Masimo Corporation (MASI - Free Report) delivered adjusted earnings per share (“EPS”) of 93 cents in the first quarter of 2022, up 3.3% year over year. The figure surpassed the Zacks Consensus Estimate by 1.1%.
The adjustments include acquisition, integration and related costs, among others.
GAAP EPS for the quarter was 81 cents, down by 11.9% from the year-earlier figure.
Revenues in Detail
Masimo registered revenues of $304.2 million in the first quarter, up 1.7% year over year on a reported basis. The figure also surpassed the Zacks Consensus Estimate by 3.6%.
At constant exchange rate, revenues grew by 3.2%.
Per management, shipments of non-invasive technology boards and instruments, excluding handheld and fingertip pulse oximeters, were 75,700 in the first quarter of 2022.
Masimo Corporation Price, Consensus and EPS Surprise
Masimo Corporation price-consensus-eps-surprise-chart | Masimo Corporation Quote
Margin Analysis
In the quarter under review, Masimo’s gross profit rose 4% to $204.8 million. Gross margin expanded 147 basis points (bps) to 67.3%.
Selling, general & administrative expenses climbed 12.6% to $108.9 million. Research and development expenses went up 4.7% year over year to $36.1 million. Adjusted operating expenses of $145 million increased 10.5% year over year.
Adjusted operating profit totaled $59.7 million, reflecting a 9% decline from the prior-year quarter. Adjusted operating margin in the first quarter contracted by 232 bps to 19.6%.
Financial Position
Masimo exited first-quarter 2022 with cash and cash equivalents of $720.1 million compared with $745.3 million at the end of 2021.
Net cash flow from operating activities at the end of first-quarter 2022 was $23.2 million compared with $59.3 million a year ago.
2022 Guidance
Masimo has upped its full-year 2022 financial outlook and provided projections for the second quarter.
Total revenues are now projected in the range of $2,000 million-$2,060 million, up from the earlier-provided outlook of $1,350 million, which had reflected a reported growth of 8.9%. The Zacks Consensus Estimate for the metric is currently pegged at $1.35 billion.
Adjusted EPS for 2022 is now projected to be within $4.46-$4.73, up from the previous projection of $4.34. The Zacks Consensus Estimate for the same is pegged at $4.29.
For the second quarter of 2022, Masimo expects its total revenues in the range of $525 million-$555 million. The Zacks Consensus Estimate for the metric is currently pegged at $349.6 million.
Adjusted EPS for the second quarter is projected to be within $1.13-$1.25. The Zacks Consensus Estimate for the same is pegged at $1.11.
Our Take
Masimo exited the first quarter of 2022 with better-than-expected results. Robust uptick in the top line is encouraging. The company recorded robust order shipments during the reported quarter, which is encouraging. Expansion of the company’s installed base is also impressive. The company closed the acquisition of Sound United in April and also confirmed that it will report consolidated financial results beginning in the second quarter of 2022, raising our optimism.
A slew of favorable studies on Masimo’s products and enhancement to its telehealth capabilities are also promising. Masimo confirmed that it has been witnessing a rebound in elective surgeries and better access for its sales force within hospitals as a result of the easing of pandemic-induced hospitalization concerns, which is encouraging. Expansion of gross margin bodes well for the stock. The company raising its full-year financial outlook also looks promising.
On the flip side, the company continuing to face supply chain challenges related to component shortages and limited labor availability at its manufacturing facilities is concerning. Contraction of adjusted operating margin in the quarter does not bode well. Masimo faces fierce competition from MedTech bigwigs, raising our apprehensions.
Zacks Rank & Stocks to Consider
Masimo currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. (OMCL - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Alkermes plc (ALKS - Free Report) .
Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicell has an estimated long-term growth rate of 16%. OMCL’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 13.4%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.