Masimo beats Street in second quarter as healthcare catches up

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Masimo (Nasdaq: MASI) today reported second-quarter results that beat consensus expectations on Wall Street.

The Irvine, Calif.-based patient monitoring technology company reported earnings of $18.1 million, or $0.33 per diluted share, on sales of $565.3 million for the three months ended July 2, 2022, for a decline in net income of 64% and sales growth of 85.3% compared to Q2 2021.

Adjusted to exclude one-time items, earnings per share were $1.35, $0.15 ahead of Street, where analysts were looking for EPS of $1.20 on sales of $540.6 million.

“Our healthcare business achieved most of the delayed first quarter shipments by ramping up manufacturing output, which drove our growth in the second quarter. As a result, our healthcare business saw in-currency revenue growth constant 11% for the first half of the year,” Masimo CEO and President Joe Kiani said in a statement. Press release.

Masimo said it expects to report adjusted EPS of $4.34 to $4.57 this year, down from a previous forecast of $4.46 to $4.73. The company also cut its revenue outlook to a range of $1.99 billion to $2.05 billion from a range of $2 billion to $2.06 billion previously.

“We are raising our constant currency financial guidance for fiscal year 2022,” Kiani said. “I am excited about the expanded potential to enter new markets with our recently acquired consumer business, which will advance solutions for our customers in hospitals and at home.

BTIG’s Marie Thibault and Sam Eiber, in a note after Masimo’s earnings call, said the company’s W1 biosensing watch is in limited release and is expected to enter a full launch in the third quarter. There’s also a planned 2023 launch of another watch, called Freedom, which is supposed to be more consumer-oriented. “We continue to expect that additional investment in product development and marketing will be required before MASI can make a meaningful contribution to new consumer healthcare product revenues.”

MASI shares fell slightly in after-hours trading.

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