Revenue Projections - Consolidated revenue for full-year 2024 is expected to be approximately $2,094 million, representing 2% growth on a reported basis and 3% growth on a constant currency basis[7]. - Healthcare revenue for full-year 2024 is expected to be approximately $1,395 million, representing 9% growth on a reported basis and 10% growth on a constant currency basis[7]. - Non-healthcare revenue for full-year 2024 is expected to be approximately $699 million, representing a 10% decline on a reported basis and a 9% decline on a constant currency basis[7]. - Full-year 2025 guidance for healthcare revenue is projected to be between $1,500 million and $1,530 million, representing 8% to 11% growth on a constant currency basis[7]. - Full-Year 2025 GAAP healthcare revenue guidance is projected between $1,500 million and $1,530 million, indicating a growth of 8% to 10% compared to $1,395 million in 2024[34]. Earnings and Profitability - Non-GAAP earnings per diluted share for full-year 2024 is expected to be more than $4.10, which represents the high end of the prior guidance range[7]. - Non-GAAP operating profit for full-year 2025 is expected to be between $398 million and $406 million, representing non-GAAP operating margins of at least 26.5%[7]. Quarterly Financial Results - GAAP consolidated revenue for the three months ended December 28, 2024, was $601 million, representing a 9% increase from $549 million in the same period of 2023[29]. - GAAP healthcare revenue for the twelve months ended December 28, 2024, was $1,395 million, showing a 9% growth from $1,275 million in 2023[30]. - GAAP non-healthcare revenue for the three months ended December 28, 2024, was $232 million, reflecting an 11% growth compared to $209 million in the same period of 2023[27]. - Non-GAAP consolidated constant currency revenue for the twelve months ended December 28, 2024, was $2,102 million, a 3% increase from $2,048 million in 2023[33]. - Non-GAAP non-healthcare constant currency revenue for the twelve months ended December 28, 2024, was $702 million, reflecting a decline of 9% from $773 million in 2023[31]. - Non-GAAP healthcare constant currency revenue for the twelve months ended December 28, 2024, was $1,400 million, indicating a 10% growth compared to $1,275 million in 2023[30]. Business Developments - The company is in the process of separating the Sound United business, which will not be included in future non-GAAP financial measures[5]. - The financial impact of one additional calendar week for the healthcare business is incorporated into the full-year 2025 guidance[5]. - Shipments of noninvasive technology boards and instruments for fourth quarter 2024 are expected to be approximately 65 thousand[7]. - The complete fourth quarter and full-year 2024 financial results will be announced on February 25, 2025[1]. Innovation and Market Strategy - The company’s innovative technologies, such as Masimo SET and rainbow Pulse CO-Oximetry, are utilized in over 200 million patients globally, enhancing patient outcomes and reducing care costs[35]. - The company continues to expand its product offerings, including the Masimo W1 Medical Watch and various portable monitoring devices, to enhance non-invasive monitoring capabilities[35]. - The company’s revenue growth strategies include focusing on healthcare technology advancements and market expansion efforts in both hospital and home settings[35].

Core Viewpoint - Analysts project that Masimo (MASI) will report quarterly earnings of $1.49 per share, reflecting a year-over-year increase of 19.2%, with revenues expected to reach $596.07 million, an 8.6% increase from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1] - Revenue from non-healthcare is estimated at $224.29 million, showing a year-over-year change of +7.3% [4] - Revenue from healthcare is projected at $369.46 million, indicating an increase of +8.7% from the prior-year quarter [4] Group 2: Profit Estimates - Gross profit from non-healthcare is forecasted to reach $77.12 million, compared to $65.80 million reported in the same quarter last year [4] - Gross profit from healthcare is estimated at $236.40 million, up from $207.70 million reported in the same quarter last year [5] Group 3: Stock Performance - Masimo shares have increased by +3.6% in the past month, outperforming the +2.6% move of the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [6]

Core Viewpoint - Masimo (MASI) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations in previous quarters [1]. Earnings Performance - Masimo has a solid track record of surpassing earnings estimates, with an average surprise of 14.18% over the last two quarters [2]. - In the last reported quarter, Masimo achieved earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, resulting in a surprise of 16.67% [3]. - For the previous quarter, the company was expected to report earnings of $0.77 per share but delivered $0.86 per share, yielding a surprise of 11.69% [3]. Earnings Estimates and Predictions - Recent estimates for Masimo have been trending upward, indicating positive sentiment among analysts [4]. - The Zacks Earnings ESP for Masimo is currently positive at +4.05%, suggesting bullish expectations for near-term earnings [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) indicates a high likelihood of another earnings beat [7]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]. Upcoming Events - Masimo's next earnings report is anticipated to be released on February 25, 2025 [7].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Masimo (MASI) currently holding a Momentum Style Score of A [2] Group 2: Masimo's Performance Metrics - Masimo has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance, especially for stocks rated 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B [3] - Over the past week, MASI shares increased by 3.53%, outperforming the Zacks Medical - Instruments industry, which rose by 1.15% [5] - In the last quarter, MASI shares rose by 24.83%, and over the past year, they gained 40.86%, while the S&P 500 increased by only 3.62% and 26.55%, respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for MASI is 391,651 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In the past two months, two earnings estimates for MASI have increased, raising the consensus estimate from $4.00 to $4.04, with no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, MASI is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Masimo Corporation (MASI) Preliminary Results and Guidance - Masimo announced preliminary revenues for Q4 2024 and full-year 2024, with shares gaining nearly 0.1% following the announcement [1] - Q4 2024 total revenues are estimated at $601 million, up 9% YoY on both reported and constant exchange rate (CER) basis, exceeding the Zacks Consensus Estimate of $594.6 million [2] - Healthcare revenues for Q4 2024 are estimated at $368 million (up 8% YoY reported, 9% CER), while Non-healthcare revenues are estimated at $232 million (up 11% YoY reported and CER) [2] - Full-year 2024 total revenues are estimated at $2,094 million, up 2% YoY reported and 3% CER, in line with the Zacks Consensus Estimate of $2.09 billion [4] - Healthcare revenues for 2024 are estimated at $1,395 million (up 9% YoY reported, 10% CER), while Non-healthcare revenues are estimated at $699 million (down 10% YoY reported, 9% CER) [5] - Adjusted EPS for 2024 is expected to exceed $4.10, surpassing the Zacks Consensus Estimate of $4.04 [5] Masimo's 2025 Guidance - Healthcare revenues for 2025 are estimated between $1,500 million and $1,530 million, representing 8% growth YoY reported and 11% CER [7] - Adjusted EPS for 2025 is expected to be in the range of $4.90-$5.10, above the Zacks Consensus Estimate of $4.49 [7] Business Segment Performance and Outlook - Non-healthcare revenues improved in Q4 2024, driven by a rebound in luxury consumer purchases and the housing market [8] - Masimo's core healthcare segment drove performance in Q3 2024, with robust growth in Healthcare revenues continuing into Q4 2024 [9] - Management is focusing on long-term growth by reallocating resources to fewer projects, concentrating on sizable market opportunities, and reducing spending in non-strategic areas [10] Stock Performance and Industry Comparison - Masimo's shares gained 28.4% between Sept 29 and Dec 28, 2024, outperforming the industry's 3.9% decline and the S&P 500's 4.8% gain [12] - Masimo currently carries a Zacks Rank 2 (Buy) [13] Other Top-Ranked Medical Stocks - Cardinal Health (CAH) has a Zacks Rank 2, with an estimated long-term growth rate of 10.5% and shares gaining 8.5% compared to the industry's 1.2% growth [14] - Cencora (COR) has a Zacks Rank 2, with an estimated long-term growth rate of 10.4% and shares gaining 0.9% against the industry's 14.4% decline [15] - DaVita (DVA) has a Zacks Rank 1, with an estimated long-term growth rate of 18.3% and shares losing 5.4% compared to the industry's 8.2% decline [17]

Price Target Changes - Goldman Sachs cut the price target for Bright Horizons Family Solutions Inc. (BFAM) from $162 to $142 while maintaining a Buy rating. The shares closed at $110.83 [1] - Rodman & Renshaw raised the price target for Viracta Therapeutics, Inc. (VIRX) from $3.5 to $0.25 but downgraded the stock from Buy to Neutral. The shares closed at $0.2370 [1] - Raymond James raised the price target for Masimo Corporation (MASI) from $170 to $194 while maintaining an Outperform rating. The shares closed at $171.02 [1] - Goldman Sachs slashed the price target for KinderCare Learning Companies, Inc. (KLC) from $41 to $35 while maintaining a Buy rating. The shares closed at $17.88 [1] - B of A Securities boosted the price target for MakeMyTrip Limited (MMYT) from $119 to $130 while maintaining a Buy rating. The shares settled at $116.21 [1]

Core Insights - The Medical Instruments industry is experiencing rapid advancements due to AI and predictive analytics, enhancing diagnostics, patient monitoring, and personalized treatment [1][2] - The adoption of generative AI (genAI) and digital therapeutics is expected to significantly impact the healthcare industry by 2025, improving early disease detection and operational efficiency [2][5] - Despite challenges such as geopolitical tensions and supply chain issues, companies like Masimo Corporation, Penumbra, and Veracyte are adapting well and seeing stock price increases [3] Industry Overview - The Zacks Medical - Instruments industry is fragmented, focusing on R&D across various therapeutic areas and utilizing AI for quick and accurate disease diagnosis and treatment [4] - Key trends include the rise of telemedicine, robotic-assisted surgeries, and advancements in 3D printing and nanomedicine [4] Trends Shaping the Industry - The genAI market in healthcare was valued at $1.8 billion in 2023 and is projected to grow at a CAGR of 33.2% from 2024 to 2032, driven by increasing demand for personalized treatment and advancements in AI technologies [5] - The diagnostics market is also expected to grow at a CAGR of 24.6% by 2034, indicating a significant shift towards AI applications in this area [5] M&A Activity - The industry is witnessing a robust M&A trend, with 168 deals worth $14.4 billion announced in Q3 2024, marking a 247% increase in value compared to the previous year [6] - Notable transactions include Johnson & Johnson's $13.1 billion acquisition of Shockwave Medical and Becton, Dickinson and Company's $4.2 billion purchase of Edwards Lifesciences' Critical Care division [6] Economic Context - The IMF projects real GDP growth of 3.2% for 2024 and 2025, with a decline in inflation expected by 2025 [7][8] - Despite these projections, risks remain due to geopolitical conflicts and potential financial market volatility [8] Industry Performance - The Zacks Medical Instruments industry has underperformed the S&P 500 but outperformed the broader sector, rising 7.7% over the past year [11] - The industry currently trades at a forward P/E of 32.16X, higher than the broader industry average of 20.63X and the S&P 500's 22.66X [13] Company Highlights - **Veracyte**: Expected 2024 sales of $443.9 million, a 22.9% increase from 2023, with a projected EPS of 38 cents, up 137.3% [17] - **Masimo**: Anticipated 2024 sales of $2.09 billion, a 1.9% rise, with an EPS estimate of $4.03, reflecting a 6.3% increase [20] - **Penumbra**: Projected 2024 sales of $1.19 billion, a 12.5% increase, with an EPS estimate of $2.81, up 34.5% from the previous year [24]

Masimo Corporation (MASI) delivered adjusted earnings per share (EPS) of 98 cents in the third quarter of 2024, up 30.7% year over year. The figure beat the Zacks Consensus Estimate by 16.7%.The adjustments include acquired intangible asset amortization, and acquisitions, integrations, divestitures, and related costs, among others.GAAP EPS for the quarter was 18 cents, down 10% year over year.MASI’s Revenues in DetailMasimo registered revenues of $504.6 million in the third quarter, up 5.4% year over year o ...

Masimo (MASI) reported $504.6 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.4%. EPS of $0.98 for the same period compares to $0.63 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $502.58 million, representing a surprise of +0.40%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.84.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Masimo (MASI) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this medical technology company would post earnings of $0.77 per share when it actually produced earnings of $0.86, delivering a surprise of 11.69%.Over the last four quarters, th ...