Medical tech company Masimo (NASDAQ:MASI) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Masimo met analysts’ revenue expectations last quarter, reporting revenues of $504.6 million, up 5.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but operating income guidance for next quarter missing analysts’ expectations.
Is Masimo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Masimo’s revenue to grow 7.8% year on year to $591.9 million, a reversal from the 11% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Masimo has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Masimo’s peers in the patient monitoring segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Insulet delivered year-on-year revenue growth of 17.2%, beating analysts’ expectations by 2.5%, and ResMed reported revenues up 10.3%, topping estimates by 1%. Insulet traded down 1.9% following the results while ResMed was also down 8.3%.
Read our full analysis of Insulet’s results here and ResMed’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the patient monitoring stocks have shown solid performance, the group has generally underperformed, with share prices down 5.3% on average over the last month. Masimo is down 5.3% during the same time and is heading into earnings with an average analyst price target of $180.73 (compared to the current share price of $161.47).
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