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Analyst Blog

Masimo Corporation (MASI - Free Report) , the global leader in innovative non-invasive monitoring technologies, recently announced that it has received a grant of $4.95 million from the Bill & Melinda Gates Foundation (BMGF). The company will use the grant to develop a low-cost pulse oximeter for use in pneumonia screening. The equipment is meant for use in several low-resource areas outside the U.S.

The device is unique as it will be designed to also measure oxygen saturation and respiration rate of patients. These two key parameters would provide additional information to clinicians when screening potential pneumonia cases in high-burden settings. The grant will also support studying the clinical use environment to ensure that the device is user friendly and fit for its purpose.

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 the pulse rate.

The company recently reported strong third-quarter earnings of 47 cents per share, up from 36 cents in the year-ago quarter. The figure also came above the Zacks Consensus Estimate of 42 cents. Revenues improved almost 9.9% year over year to $167.6 million, and came ahead of the Zacks Consensus Estimate of $166 million. Product revenues increased 10.8% to $160.3 million.
 

For full-year 2016, Masimo recently raised the total revenue guidance to approximately $692 million from $689 million expected previously. Product revenues are expected at around $661 million. Meanwhile, Royalty revenue projection is expected at $31 million. Earnings are projected at $2.13 per share.

Zacks Rank & Key Picks

Currently, Masimo sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the medical sector include Anika Therapeutics Inc. (ANIK - Free Report) , Cambrex Corporation (CBM - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Anika Therapeutics represents a strong long-term expected growth rate of 15.00%. Notably, the company has a positive one-year return of almost 8.7%.

Cambrex Corporation has a positive one-year return of 6.6%. The company also has a promising long-term expected growth rate of 15.00%.

IDEXX Laboratories represents a stellar one-year return of 63.04%. The company has a long-term expected growth rate of almost 14.96%.

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