Masimo(US:MASI) ZACKS·2025-11-05 18:11Core Insights - Masimo Corporation reported adjusted earnings per share (EPS) of $1.32 for Q3 2025, reflecting a 37.5% year-over-year increase and surpassing the Zacks Consensus Estimate by 10.9% [1] - The company's revenues for Q3 2025 reached $371.5 million, an 8.2% increase year-over-year, also exceeding the Zacks Consensus Estimate by 1.3% [2] Revenue Analysis - Total revenues were $371.5 million in Q3 2025, up 8.2% year-over-year, with constant exchange rate revenues at $369.2 million, marking a 7.6% increase [2] - Revenue excluding related party revenues was $343.1 million, up 8.5% year-over-year, while related party revenues were $28.4 million, up 4.4% year-over-year [4] Segment Performance - Healthcare revenues totaled $371.2 million in Q3 2025, an 8.1% increase year-over-year, with consumable and service revenues growing by 1% and capital equipment and other revenues increasing by 67% [5] Margin and Profitability - Gross profit increased by 8.7% year-over-year to $230.6 million, with a gross margin of 62.1%, up 29 basis points from the previous year [6] - Total adjusted operating profit was $83.7 million, reflecting a 119.1% increase year-over-year, with an adjusted operating margin of 22.5%, up 1140 basis points [7] Financial Position - At the end of Q3 2025, Masimo had cash and cash equivalents of $312.3 million, up from $149.6 million at the end of Q2 2025, and long-term debt decreased to $559.1 million from $598.7 million [8] Guidance and Outlook - For 2025, Masimo expects total revenues to be between $1,510 million and $1,530 million, reflecting an increase of 8.2%-9.7% year-over-year [9] - Adjusted EPS for 2025 is projected to be in the range of $5.62-$5.79, up from the previous outlook of $5.45-$5.70 [10] Strategic Developments - The company completed the sale of Sound United to Harman and expanded its strategic partnership with Philips, which is viewed positively [12]