Masimo Pitches 2028 Plan With 30% Operating Margins

Core Insights - Masimo Corp hosted its 2025 Investor Day, outlining its long-term strategy and growth pillars, projecting a revenue CAGR of 7%–10% through 2028 and operating margins of about 30% [1][2] - The company aims for adjusted EPS of $8.00 by 2028 and expects to generate approximately $1 billion in cumulative operating cash flow from 2026 to 2028 [2] - Masimo reaffirmed its 2025 financial guidance, projecting revenue between $1.51 billion and $1.53 billion, operating profit between $412 million and $424 million, and EPS between $5.40 and $5.55 [2][5] Financial Performance - In the third quarter, Masimo reported adjusted earnings of $1.32 per share, exceeding the consensus of $1.20, with sales of $371.2 million, surpassing the consensus of $366.85 million [5] - The company raised its fiscal 2025 adjusted earnings forecast from $5.45-$5.70 per share to $5.62-$5.79, compared to the consensus of $5.33 [5] - Masimo narrowed its fiscal 2025 sales outlook from $1.51 billion-$1.54 billion to $1.51 billion-$1.53 billion, aligning with the consensus of $1.52 billion [5] Market Position and Analyst Sentiment - Masimo's CEO emphasized the company's mission to deliver innovations that empower clinicians and transform patient care, indicating a strong market position [3] - Analyst ratings from BTIG maintain a Buy rating for Masimo, raising the price forecast from $198 to $200 [3] Legal Developments - A federal jury ruled that Apple must pay Masimo $634 million for infringing a patent related to blood-oxygen reading technology, marking a significant legal victory for the company [4]