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Masimo (MASI) Beats on Q2 Earnings and Revenues, Guides Up

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Masimo Corp. (MASI - Free Report) reported earnings of 83 cents per share in the second quarter of 2017, outperforming the Zacks Consensus Estimate of 71 cents. The bottom line also improved from the year-ago earnings of 49 cents.

Revenues improved 11.8% to $192.9 million from $172.6 million in the year-ago quarter and beat the Zacks Consensus Estimate of $189.0 million.

Quarter Details

Worldwide direct product revenues (87.7% of product revenue) increased 13.8% to $160.3 million. OEM sales (12.3% of product revenues) declined 5.4% to $22.4 million from the year-ago quarter. Total U.S. product revenue decreased 5.0% to $126.5 million on a year-over-year basis.

The company’s Rainbow product revenues in the reported quarter totaled $17.1 million, which was up 14.6% on a year-over-year basis. During the quarter under review, Masimo shipped approximately 50,000 SET Pulse Oximeters and Rainbow SET Pulse CO-Oximeters, excluding handheld units. Per company estimation, its worldwide installed base was 1,545,000 units, as of Jul 1, up 5.9% from 1,459,000 units as of Jul 2, 2016.

 

Masimo Corporation Price, Consensus and EPS Surprise

 

Masimo Corporation Price, Consensus and EPS Surprise | Masimo Corporation Quote

Financial Condition

 

As of Jul 1, Masimo’s total cash and cash investments were $331.4 million compared with $306.0 million as of Dec 31, 2016. The company generated $14.4 million in cash from operations and received $48.2 million in proceeds from stock option exercises.

Guidance

Masimo now expects total fiscal 2017 revenues of approximately $769.0 million, up from the previously provided guidance of $759.0 million. Total fiscal 2017 product revenues are projected at approximately $736.0 million, up from the previous guidance of $727.0 million. Royalty revenues projections increased to approximately $33.0 million from the previously provided guidance of $32.0 million. Fiscal 2017 earnings per diluted share are expected to be approximately $2.80, up from $2.65.

Zacks Rank & Stocks to Consider

Masimo has a Zacks Rank #3 (Hold).

Better-ranked medical stocks include Edwards Lifesciences Corporation (EW - Free Report) , Abiomed Inc. (ABMD - Free Report) and Fresenius Medical Care Corporation (FMS - Free Report) . Fresenius Medical Care and Edwards Lifesciences sport a Zacks Rank #1 (Strong Buy), while Abiomed has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has a one-year return of 1.5%.

Abiomed delivered a strong return of 23.4% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.

Fresenius Medical Care represents a return of 2.5% over the last one year. The company delivered a solid earnings surprise of 20.5% in the last reported quarter.

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