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.
Why Is Masimo (MASI) Up 6.9% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Masimo (MASI - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Masimo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Masimo’s Q1 Earnings Surpass Estimates, FY22 View Up
Masimo delivered adjusted earnings per share 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 earnings per share 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.
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 $720.1million 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 earnings per share 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 earnings per share 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.83% due to these changes.
VGM Scores
At this time, Masimo has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Masimo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Masimo (MASI) Up 6.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Masimo (MASI - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Masimo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Masimo’s Q1 Earnings Surpass Estimates, FY22 View Up
Masimo delivered adjusted earnings per share 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 earnings per share 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.
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 $720.1million 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 earnings per share 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 earnings per share 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.83% due to these changes.
VGM Scores
At this time, Masimo has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Masimo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.