Masimo Corporation MASI
is likely to gain from a plethora of developments and an impressive view for 2020.
Over the past year, the stock has rallied 10.3% against the industry
’s 24.9% decline. Meanwhile, the S&P 500 index has slipped 18.2%.
This $8.27-billion medical technology company currently has a Zacks Rank #2 (Buy). Masimo’s earnings are expected to grow 23% in the next five years. Also, the company has a trailing four-quarter positive earnings surprise of 5.3%, on average.
Let’s take a closer look at the factors that are working in favor of the company right now.
Masimo has seen a plethora of developments lately.
The company is providing discounts on its Rainbow platform to help customers manage blood supplies. This is likely to tackle the blood shortage due to the COVID-19 outbreak worldwide.
Also, the company recently acquired Germany’s TNI medical. Notably, TNI’s novel softFlow is expected to boost Masimo’s respiratory care product portfolio. The COVID-19 wave has ramped up the demand for TNI’s softFlow technology. Hence, this technology will provide Masimo with additional tools to address the growing number of people affected by pulmonary diseases.
Moreover, the company recently inked a deal with Imprivata concerning the integration of Imprivata Medical Device Access into Masimo’s Hospital Automation solutions that feature the Root Patient Monitoring and Connectivity Platform.
Further, Masimo has issued an impressive guidance for 2020.
The company expects 2020 product revenues of $1.04 billion, calling for growth of 12.3% year over year and11% at constant currency.
Adjusted earnings per share (EPS) are expected at $3.56.
Adjusted gross margin is projected at 68%, while adjusted operating margin is expected to be 24.7%.
For 2020, the Zacks Consensus Estimate for revenues is pegged at $1.04 billion, indicating an improvement of 10.4%. For adjusted EPS, the same stands at $3.56, suggesting growth of 10.6% from the year-ago quarter’s reported figure.
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