Masimo Stock Gains Following Solid Preliminary Q4 Revenues

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]