We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Masimo (MASI) Preliminary Q2 Results Aided by Healthcare Unit
Read MoreHide Full Article
Masimo Corporation (MASI - Free Report) announced preliminary financial results for second-quarter 2024 on Jul 9. Following this release, the company’s shares edged up 0.1% in the after-hours trading session.
Per the preliminary release, second-quarter 2024 consolidated revenues are likely to be $496 million, up 9% year over year on a reported basis. The Zacks Consensus Estimate is pegged at $493.5 million.
At constant exchange rate (CER), revenues are expected to improve 10.1% year over year.
Healthcare revenues are expected to be $344 million, up 22.4% on a reported basis and 23.1% at CER year over year.
Non-healthcare revenues are expected to be $152 million, down 12.6% and 10.9% year over year on a reported basis and at CER, respectively.
Per management, the incremental value of new healthcare contracts is expected to be $134 million, while driver shipments are expected to be 58 thousand during the second quarter of 2024.
Guidance
Management plans to provide updated financial guidance for 2024 on the second-quarter earnings call.
A Brief Q2 Analysis
Per management, Masimo witnessed strength in its healthcare business in the second quarter, along with a strong order backlog as it enters the third quarter. Sensor utilization and hospital census have also improved from 2023. The company also achieved a record second quarter in terms of converting customers to Masimo’s technologies, with an expected $134 million of incremental contract value. These look promising for the stock.
On first-quarter 2024 earnings call in May, management stated that the majority of its sensor production is in Malaysia. Management expects this to provide great opportunities for increases in profitability. Increased contributions from Malaysia are likely to have a positive impact on second-quarter revenues.
In July, the company announced that the Masimo W1 Sport advanced health tracking wearable is now equipped with a new feature — scientifically based sleep analysis with Sleep Halo. In June, Masimo, along with Cleveland Clinic, announced the launch of a new partnership centered around hospital-based remote patient monitoring, including TeleCritical Care. These raise our optimism about the stock.
Price Performance
Shares of the company have gained 14.4% between Apr 1 and Jun 29, 2024, compared with the industry’s 8.3% rise and the S&P 500’s 17.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, Masimo carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Stryker Corporation (SYK - Free Report) and Ecolab Inc. (ECL - Free Report) .
DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 14.4% compared with the industry’s 17.2% rise between Apr 1 and Jun 29, 2024.
Stryker, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.6%. SYK’s earnings surpassed estimates in each of the trailing four quarters, with the average being 4.9%.
Stryker has gained 14.2% compared with the industry’s 2.3% rise between Apr 1 and Jun 29, 2024.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 21.8% against the industry’s 19.2% decline between Apr 1 and Jun 29, 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Masimo (MASI) Preliminary Q2 Results Aided by Healthcare Unit
Masimo Corporation (MASI - Free Report) announced preliminary financial results for second-quarter 2024 on Jul 9. Following this release, the company’s shares edged up 0.1% in the after-hours trading session.
The company is expected to release second-quarter results on Aug 13, 2024.
Prelim Q2 in Detail
Per the preliminary release, second-quarter 2024 consolidated revenues are likely to be $496 million, up 9% year over year on a reported basis. The Zacks Consensus Estimate is pegged at $493.5 million.
At constant exchange rate (CER), revenues are expected to improve 10.1% year over year.
Healthcare revenues are expected to be $344 million, up 22.4% on a reported basis and 23.1% at CER year over year.
Non-healthcare revenues are expected to be $152 million, down 12.6% and 10.9% year over year on a reported basis and at CER, respectively.
Per management, the incremental value of new healthcare contracts is expected to be $134 million, while driver shipments are expected to be 58 thousand during the second quarter of 2024.
Guidance
Management plans to provide updated financial guidance for 2024 on the second-quarter earnings call.
A Brief Q2 Analysis
Per management, Masimo witnessed strength in its healthcare business in the second quarter, along with a strong order backlog as it enters the third quarter. Sensor utilization and hospital census have also improved from 2023. The company also achieved a record second quarter in terms of converting customers to Masimo’s technologies, with an expected $134 million of incremental contract value. These look promising for the stock.
On first-quarter 2024 earnings call in May, management stated that the majority of its sensor production is in Malaysia. Management expects this to provide great opportunities for increases in profitability. Increased contributions from Malaysia are likely to have a positive impact on second-quarter revenues.
In July, the company announced that the Masimo W1 Sport advanced health tracking wearable is now equipped with a new feature — scientifically based sleep analysis with Sleep Halo. In June, Masimo, along with Cleveland Clinic, announced the launch of a new partnership centered around hospital-based remote patient monitoring, including TeleCritical Care. These raise our optimism about the stock.
Price Performance
Shares of the company have gained 14.4% between Apr 1 and Jun 29, 2024, compared with the industry’s 8.3% rise and the S&P 500’s 17.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, Masimo carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Stryker Corporation (SYK - Free Report) and Ecolab Inc. (ECL - Free Report) .
DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 14.4% compared with the industry’s 17.2% rise between Apr 1 and Jun 29, 2024.
Stryker, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.6%. SYK’s earnings surpassed estimates in each of the trailing four quarters, with the average being 4.9%.
Stryker has gained 14.2% compared with the industry’s 2.3% rise between Apr 1 and Jun 29, 2024.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 21.8% against the industry’s 19.2% decline between Apr 1 and Jun 29, 2024.