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) Down 9.6% 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 lost about 9.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Masimo due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Masimo Earnings and Revenues Beat Estimates in Q4
Masimo reported fourth-quarter 2019 adjusted EPS of 91 cents, which surpassed the Zacks Consensus Estimate of 71 cents. Earnings improved 12.3% from the year-ago quarter.
The company’s revenues improved 10.9% year over year to $247.5 million and beat the Zacks Consensus Estimate of $243 million.
Segmental Analysis
Product Revenues
Product revenues in the fourth quarter totaled $247.4 million, up 11.8% from the year-ago quarter and 12% at constant currency (cc). Per management, shipments of non-invasive technology boards and monitors increased 1.8% to 61,400 in the quarter.
Royalty and Other Revenues
Revenues at the segment totaled $0.1 million, significantly down from the year-ago quarter’s $1.7 million.
Margin Analysis
In the quarter under review, gross profit totaled $166.9 million, up 12.5% year over year. Gross margin was 67.4%, up 100 basis points (bps).
Adjusted operating income in the quarter totaled $63.6 million, up 20.9% from a year ago. Adjusted operating margin dropped 190 bps to 25.7% in the quarter.
Research and development expenses totaled $23.4 million, up 12.7%.
SG&A expenses in the quarter grossed $81.9 million, up 11.2%.
Guidance
Masimo expects 2020 product revenues of $1.04 billion, calling for growth of 12.3% and11% at cc.
Adjusted EPS is expected at $3.56.
Adjusted gross margin is projected at 68%, while adjusted operating margin is expected at 24.7%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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) Down 9.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Masimo (MASI - Free Report) . Shares have lost about 9.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Masimo due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Masimo Earnings and Revenues Beat Estimates in Q4
Masimo reported fourth-quarter 2019 adjusted EPS of 91 cents, which surpassed the Zacks Consensus Estimate of 71 cents. Earnings improved 12.3% from the year-ago quarter.
The company’s revenues improved 10.9% year over year to $247.5 million and beat the Zacks Consensus Estimate of $243 million.
Segmental Analysis
Product Revenues
Product revenues in the fourth quarter totaled $247.4 million, up 11.8% from the year-ago quarter and 12% at constant currency (cc). Per management, shipments of non-invasive technology boards and monitors increased 1.8% to 61,400 in the quarter.
Royalty and Other Revenues
Revenues at the segment totaled $0.1 million, significantly down from the year-ago quarter’s $1.7 million.
Margin Analysis
In the quarter under review, gross profit totaled $166.9 million, up 12.5% year over year. Gross margin was 67.4%, up 100 basis points (bps).
Adjusted operating income in the quarter totaled $63.6 million, up 20.9% from a year ago. Adjusted operating margin dropped 190 bps to 25.7% in the quarter.
Research and development expenses totaled $23.4 million, up 12.7%.
SG&A expenses in the quarter grossed $81.9 million, up 11.2%.
Guidance
Masimo expects 2020 product revenues of $1.04 billion, calling for growth of 12.3% and11% at cc.
Adjusted EPS is expected at $3.56.
Adjusted gross margin is projected at 68%, while adjusted operating margin is expected at 24.7%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Masimo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.