Back to top
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Masimo (MASI) Down 0.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Masimo (MASI - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Masimo due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Masimo Earnings and Revenues Beat Estimates in Q2
Masimo Corporation reported second-quarter 2020 adjusted earnings per share of 85 cents, which surpassed the Zacks Consensus Estimate of 78 cents by 8.9%. Earnings improved 11.8% from the year-ago quarter.
Total revenues (including Royalty) improved 31.1% year over year to $301 million and beat the Zacks Consensus Estimate of $289.33 million by 4%.
Segmental Analysis
Product Revenues
Product revenues in the second quarter totaled $301 million, up 31.1% from the year-ago quarter and 32% at constant currency (cc).
Per management, shipments of non-invasive technology boards and monitors surged 174% to a record 165600 in the quarter.
Margin Analysis
In the quarter under review, gross profit totaled $191.6 million, up 24.1% year over year. Gross margin was 63.6%, down 355 basis points (bps).
Adjusted operating profit in the quarter totaled $62.2 million, up 19.7% from a year ago. Adjusted operating margin contracted 196 bps to 20.7% in the quarter.
2020 Guidance
Given the uncertainties surrounding the COVID-19 pandemic and its impact on the company’s normal business patterns, Masimo has not issued any guidance for 2020.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -10.89% due to these changes.
VGM Scores
Currently, Masimo has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Masimo has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.