Masimo (MASI) closed the last trading session at $114.02, gaining 3.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $145.33 indicates a 27.5% upside potential. The mean estimate comprises six short-term price targets with a standard deviation of $33.38. While the lowest estimate of $86 indicates a 24.6% decline from the current price level, the most optimistic analyst expects th ...

Earlier this month, Masimo subpoenaed proxy advisors ISS and Glass Lewis for their private communications with investors about the upcoming proxy contest with activist Politan Capital, according to people familiar with the matter. The unusual move comes after the medical device company delayed its annual meeting and sued Politan Capital in federal court earlier this summer. Masimo founder Joe Kiani, a close confidante of President Joe Biden, has framed the upcoming vote as existential. Glass Lewis disclosed ...

Masimo's Consumer Business Separation - Masimo has received unsolicited inbound requests from several entities to acquire its consumer audio business following the expiry of the exclusivity period for a potential joint venture [1] - In May, Masimo entered into a non-binding term sheet to sell the majority stake in its consumer audio and consumer health businesses for $850-$950 million on a cash and debt-free basis [2] - The current term sheet offer is lower than the acquisition price paid by Masimo, implying a potential loss for shareholders [3] - Masimo may separate its business through a joint venture, spin-off, or complete sale of the consumer audio business, while retaining its professional healthcare and telehealth/telemonitoring products [4] - Masimo paid over $1 billion to acquire Viper Holdings Corporation in 2022, adding the consumer business to its portfolio [6] - Activist investor Politan Capital has been pressuring for the separation of the consumer business and is concerned about the transfer of IP rights [7] - Masimo will choose the separation path based on the unanimous decision of its board of directors, aiming to meet its long-term goal of $8 earnings per share in five years [8] Masimo's Financial Performance and Industry Comparison - Masimo's shares have risen 5.3% year to date, compared to the industry's 7.2% growth and the S&P 500's 16.5% increase [4] Masimo's Product Portfolio Expansion - Masimo received FDA 510(k) clearance for its W1 medical watch, which can be integrated with the Masimo SafetyNet telemonitoring solution [9] - Masimo announced Sleep Halo, a new feature for its W1 Sport wearable, offering overnight sleep data tracking with over 70,000 daily measurements [10] Other Top-Ranked Medical Stocks - DaVita (DVA) has an estimated long-term growth rate of 17.5%, with earnings surpassing estimates in each of the trailing four quarters and shares rising 43.4% year to date [12] - Aspen Technology (AZPN) has an estimated long-term growth rate of 13.1%, with earnings surpassing estimates in two of the trailing four quarters and shares losing 4.2% year to date [12][13] - Universal Health Services (UHS) has an estimated long-term growth rate of 19%, with earnings surpassing estimates in each of the trailing four quarters and shares rising 48.6% year to date [13]

NEW YORK, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Masimo Corporation (NASDAQ: MASI) on behalf of long-term stockholders following a class action complaint that was filed against Masimo on August 22, 2023 with a Class Period from February 28, 2023 to July 17, 2023. Our investigation concerns whether the board of directors of Masimo have breached their fiduciary duties to the company. The comp ...

Masimo Corporation (MASI) delivered adjusted earnings per share (EPS) of 86 cents in the second quarter of 2024, up 13.2% year over year. The figure beat the Zacks Consensus Estimate by 11.7%. The adjustments include acquired intangible asset amortization, and acquisitions, integrations, divestitures, and related costs, among others. GAAP EPS for the quarter was 29 cents, flat year over year. Revenues in Detail Masimo registered revenues of $496.3 million in the second quarter, up 9% year over year on a rep ...

Financial Data and Key Metrics - Healthcare revenues for Q2 2024 were $344 million, representing 23% growth YoY [9] - Consumable and service revenues grew 29%, while capital and other revenues declined 9% [9] - Non-healthcare revenues were $152 million, an 11% decline YoY [11] - Consolidated non-GAAP gross margin was 54%, with healthcare gross margins at 62.5% and non-healthcare at 35% [11] - Non-GAAP operating profit was $73 million, with an operating margin of 15% [12] - Non-GAAP EPS for Q2 was $0.86, a 13% increase YoY [12] - Operating cash flow was $75 million, and $93 million of debt was paid down, reducing outstanding debt to $782 million [12] Business Line Performance - Pulse oximetry consumables grew 35%, capnography consumables grew 35%, and brain monitoring consumables grew 19% [9] - Rainbow consumable revenues declined 5% due to timing of shipments outside the US, but double-digit growth is expected for the full year [9] - Driver shipments for Q2 were 59,000, above expectations, with steady increases anticipated for the remainder of the year [10] - Non-healthcare revenues were impacted by a weakening luxury consumer market and a slow housing market [11] Market Performance - Strong hospital conversions contributed to $134 million in incremental value for Q2, a 28% increase YoY [6][10] - Unrecognized contract revenues reached $1.6 billion at the end of Q2, a 16% increase [10] - Hospital census growth and increased admissions are driving demand for Masimo sensors [6][9] Strategic Direction and Industry Competition - The company is evaluating the separation of its consumer business, with potential options including a JV, sale, or spinoff [8][16] - The separation aims to maximize shareholder value and achieve long-term goals, including doubling EPS to $8 in five years [8][17] - The company is focused on expanding its healthcare footprint and improving operational efficiencies, including relocating sensor manufacturing to Malaysia [6][7] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong execution in the healthcare business, driven by hospital conversions and operational efficiencies [6][7] - The company is confident in achieving long-term goals, including 30% operating margins for the healthcare business within five years [7][11] - The consumer business is facing challenges due to economic pressures, but growth is expected in hearables and headphones in Q4 [36] Other Important Information - The company provided preliminary estimates of the financial impact of separating the consumer business, with potential improvements in non-GAAP operating margins by 610 basis points to 21% if the audio business is sold, or by 260 basis points to 24% if combined with the consumer health business [17][18] - The company plans to use proceeds from any separation to pay down debt and reduce interest expenses [18] Q&A Session Summary Question: Sustainability of Core Business Improvements - Management emphasized strong hospital census and backlog as indicators of sustainable growth, with no revenue or margin pull-forward [21][22] Question: JV Partner Situation and Separation Timeline - The company extended exclusivity with a potential JV partner until August 15, with no definitive timeline for a decision [23][24] - The Board is considering all options for separation, including a JV, sale, or spinoff, and will act decisively to maximize shareholder value [25][27] Question: Q3 Revenue Guidance and Trends - Q3 healthcare revenue guidance reflects strong contracting and normalized installations, with cautious optimism on hospital census growth [29][30][31] Question: Oxygen Reserve Index Adoption - Adoption of Oxygen Reserve Index in the US is driving growth in Rainbow consumables, with double-digit growth expected for the full year [32] Question: Consumer Business Outlook - Growth in the consumer business is expected from hearables and headphones, particularly in Q4, despite economic pressures [36] Question: Gross Margin and Cost Reduction Initiatives - The transition of sensor manufacturing to Malaysia is ahead of schedule, with gross margins expected to improve to 63% in Q4 [38][39] - Cost reduction initiatives are focused on product updates and operational efficiencies, contributing to margin expansion [40][42] Question: Driver Shipments and Growth Mix - Driver shipments are expected to increase, with half of the 59,000 drivers shipped in Q2 being new incremental drivers [45][46] - Growth is expected to be driven by a mix of driver base expansion and increased consumable revenue per driver [47] Question: Apple Litigation Update - The company has ongoing litigation with Apple, with trials expected in late 2024 and 2025, potentially broadening injunctions against Apple [49][50] Question: Q4 Guidance and Aggressiveness - Q4 guidance reflects strong growth in healthcare revenues and improved gross margins, with a better tax rate contributing to EPS growth [53][54] Question: Separation Estimates and Assumptions - The company provided updated estimates for the financial impact of separating the consumer business, with consistent assumptions and minor adjustments [66][67] Question: Preference for JV Over Audio Separation - The JV option is preferred due to potential cash proceeds and long-term upside in the consumer health business, despite short-term challenges [70][71]

Masimo (MASI) reported $496.3 million in revenue for the quarter ended June 2024, representing a year-overyear increase of 9%. EPS of $0.86 for the same period compares to $0.62 a year ago. The reported revenue represents a surprise of +0.24% over the Zacks Consensus Estimate of $495.09 million. With the consensus EPS estimate being $0.77, the EPS surprise was +11.69%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Masimo (MASI) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 11.69%. A quarter ago, it was expected that this medical technology company would post earnings of $0.71 per share when it actually produced earnings of $0.77, delivering a surprise of 8.45%. Over the last four quarters, th ...

Masimo Stork: More Than Just a Watchful Eye Unlike traditional baby monitors, Masimo Stork goes beyond clear video and sound. It utilizes the same FDAcleared SET® Technology that's been trusted in hospital NICUs for over 25 years. This innovative tech monitors your baby's vitals – second by second! Masimo Stork tracks oxygen saturation, pulse rate, and even skin temperature, providing real-time data on your baby's well-being. ORLANDO, Fla., July 27, 2024 (GLOBE NEWSWIRE) -- As you prepare your little one's ...

Over the past year, this Zacks Rank #2 (Buy) company's shares have lost 7.1% against the industry's 6% growth. The S&P 500 has witnessed 17.6% growth in the said time frame. Image Source: Zacks Investment Research Product Portfolio: We are optimistic about Masimo's healthcare business, which develops, manufactures and markets a variety of non-invasive patient monitoring technologies, hospital automation and connectivity solutions, remote monitoring devices and consumer health products. Strong Q1 Results: Ma ...