Summary of Masimo's Conference Call Company Overview - **Company**: Masimo - **Industry**: Medical Devices Key Points and Arguments Leadership and Strategic Focus - Masimo is undergoing a leadership transition with a new CEO, aiming to realign and optimize its cost structure while focusing on core growth areas within hospital settings [2][4] - The company plans to concentrate on its flagship product, pulse oximetry, which accounts for over 70% of revenues, alongside growth in rainbow hemodynamics, brain monitoring, capnography, gas monitoring, and automation [2][3] Financial Performance and Growth Expectations - Masimo expects a long-term revenue growth of 7% to 10% with aspirations to achieve 30% operating margins [4] - In Q1, capital growth was reported at 32%, significantly higher than the expected flat to mid-single-digit growth, attributed to a large tender order from a long-term customer [8][9] - Consumable growth is anticipated to be in the high single-digit to low double-digit range, with Q1 showing strong underlying growth despite some lumpiness in orders [10] Operational Challenges and Cyber Incident - The company is recovering from a cyber incident, with critical systems being prioritized for restoration. There is no expected impact on annual guidance, although some near-term disruptions are anticipated [15][17] - The company is quantifying the cost impact of the cyber incident, with insurance expected to cover a significant portion of the expenses [19] Tariffs and Cost Management - Masimo sources about 5% of its cost of goods from China, with a potential reduction in tariff exposure due to recent changes in tariff rates [26][27] - The company is focusing on cost mitigation strategies, including pricing adjustments and optimizing supply chains, particularly in Mexico and Malaysia [32][35] Margin Expansion and Future Outlook - Operating margins in Q1 were reported at 28.8%, with a goal to maintain margins between 28% and 28.5% for the year [41] - The long-term goal is to achieve gross margins closer to 66%, with aspirations for 70% despite setbacks from COVID-19 and inflationary pressures [40][43] Litigation Updates - Ongoing litigation with Apple includes patent infringement cases, with significant developments expected in the coming months [52][54] Capital Deployment Strategy - The company plans to prioritize share buybacks and improve liquidity while evaluating opportunities for tuck-in technologies to enhance its core business [48][49] Conclusion - Masimo is optimistic about its position for the year, emphasizing strong fundamentals and a commitment to margin expansion and reinvestment for growth [56][57]

Masimo (MASI) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Eli Kammerman - Vice President of Business Development & Investor RelationsKatie Szyman - CEOMicah Young - Executive VP & CFORick Wise - Managing Director - Medical Technology & SuppliesMatt Taylor - Managing Director Conference Call Participants Vik Chopra - AnalystJason Bednar - Senior Research AnalystMike Matson - Senior Equity Research AnalystMike Polark - Senior Equity Research Analyst - Medical Devices Operator Good afte ...

Masimo (MASI) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to Masimo's First Quarter twenty twenty five Earnings Conference Call. The company's press release is available at www.masimo.com. At this time, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I'm pleased to introduce Eli Hammerman, Masimo's Vice President of Business Development and Investor Rela ...

The first-quarter 2025 earnings season is underway for the Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry classification), with several MedTech companies already releasing their quarterly results. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Per the latest Earnings Preview, the Medical sector is one of the nine sectors whose first-quarter earnings are expected to be above the year-earlier period. It is also one of the sectors that is likely to witness ...