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Masimo's (MASI) Preliminary Results for 2018 Cheer Investors

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Masimo Corporation (MASI - Free Report) announced preliminary results for 2018. The company is scheduled to release full financial results on Feb 26, 2019.

Revenues are forecasted to be $855-$858 million. The Zacks Consensus Estimate for revenues is pegged at $854.1 million, which lies within the range provided by the company.

Adjusted earnings per share are expected to be above the previously-issued figure of $2.92, reflecting 27% year-over-year growth. Our consensus mark currently pegs earnings of $2.92 per share.

Masimo Corporation Price and Consensus

 

Shares Up

Masimo’s full-year preliminary results seem to impress investors. Yesterday, share price of this Zacks Rank #4 (Sell) stock has improved5.1% to close at $112.11.

Masimo's shares have outperformed the industry in a year's time. The company’s shares gained 30.2% compared with the industry's growth of 1.5%. The current level is also higher than the S&P 500 index's decline of 6.1% over the same time frame. A broad product spectrum, positive tidings in the regulatory front and considerable focus on innovation provide a cushion to the company's stock.

Segmental Details

Masimo expects product revenues of $827-$830 million for the year, mirroring year-over-year growth of 12-12.4%. This also indicates constant-currency (cc) growth of 11.5-11.9%.

Royalty and other revenues for the year are forecasted to be $28 million.

Issues Guidance for 2019

Product revenues are anticipated to be $910 million, up 9.6-10% year over year.This also implies growth of 10.5-10.9% at cc.

Adjusted earnings per share are expected to be $3.05. The Zacks Consensus Estimate stands at $3.01 per share, below the given figure.

Management also noted that Masimo will face currency headwinds of worth $7 million in 2019.

Stocks to Consider

A few better-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Penumbra, Inc. (PEN - Free Report) and OPKO Health, Inc (OPK - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva Systems’ long-term earnings growth rate is projected to be19.5%.

Penumbra has a long-term earnings growth rate of 20%.

OPKO Health’s long-term earnings growth rate is projected to be12%.

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