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Masimo Foundation Co-Finds the United for Oxygen Alliance


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Masimo (MASI - Analyst Report) , the global leader in innovative non-invasive monitoring technologies, recently announced that the Masimo Foundation has co-founded the United for Oxygen Alliance. The Masimo Foundation is a U.S.-based, private charitable foundation focusing on improving patient care, preserving patient dignity and reducing cost of care.

The United for Oxygen Alliance is part of the Clinton Global Initiative commitment. This is the first-of-its-kind, public-private partnership. It seeks to expand access to medical oxygen and pulse oximetry for women and children in Ethiopia. The alliance has in total 15 members that include the likes of Bill & Melinda Gates Foundation, the United Nations, PATH, the Pneumonia Innovations Team, Save the Children, UNICEF, and USAID.

The United for Oxygen Alliance will partner with the Ethiopian government to increase the availability of pulse oximetry screenings and oxygen therapy technologies. Apart from this, it will provide training to local staff as well as establish sustainable financial solutions for procuring, installing and maintaining equipment.

Irvine, CA-based Masimo develops, manufactures and markets a family of non-invasive monitoring systems. The company’s flagship product – Signal Extraction Pulse Oximetry – is used to monitor blood oxygen saturation levels and protect against hypoxemia and hyperoxemia. The device also measures pulse rate.

Last month, Masimo reported impressive second-quarter 2016 results and projected higher total revenue and earnings for full-year 2016. These developments bode well for the company.

In detail, for the full year, Masimo projects total revenue of $689 million, up from the previous projection of $677 million. Product revenues are expected at around $658 million, up from the previous guidance of $647 million. Royalty revenue is expected at $31 million, up from the previously guided $30 million.

Masimo forecasts gross margin of approximately 65%, up from 64.7% guided previously. However, management expects operating expense of approximately $314 million, which is also slightly higher than the previous guidance of $312 million. Then again, earnings per share are projected at $2.01, up from the earlier projected figure of $1.83.

Zacks Rank & Key Picks

Currently, Masimo sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the medical sector include GW Pharmaceuticals plc (GWPH - Analyst Report) , NuVasive, Inc. (NUVA - Analyst Report) and Baxter International Inc. (BAX - Analyst Report) , also carrying a Zacks Rank #1 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals consistently surpassed expectations in the last four quarters, with an average positive surprise of 41.67%. This represents an impressive year-to-date return of approximately 54.9%, better than the S&P 500’s 5.9% over the same period.

NuVasive also has a steady record in beating earnings expectations in each of the last four quarters, with an average positive surprise of 18.98%. Year to date, the stock has outperformed the S&P 500 with a gain of approximately 23.4%.

Finally, Baxter International also surpassed expectations in each of the last four quarters, with an average positive surprise of 30.55%. This represents an impressive year-to-date return of approximately 24.48%.

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