) posted 13.0% rise in net earnings of $15.6 million or 27 cents
per share in the third quarter of the year from $13.8 million or
24 cents per share in the same quarter of 2012. With this,
earnings edged past the Zacks Consensus Estimate by a penny.
Revenues in the quarter (including royalties) scaled up 10% to
$131.4 million, nearly reaching the Zacks Consensus Estimate of
Product revenues grew 11% to $124.5 million while global direct
product revenue rose 12% in the third quarter, representing 85%
of total product revenue. OEM sales, which accounted for 15% of
product revenues, went up 7% in the quarter.
Revenues from sales of MASI rainbow products spiked 9% to $12.0
million in the third quarter. Revenues from rainbow products
included $3.9 million in sales of total hemoglobin products.
Masimo shipped about 44,000 SET pulse oximetry and rainbow Pulse
CO-Oximetry units in the quarter (excluding handheld units), up
33% from 33,100 in the same quarter a year ago. MASI expects
worldwide installed base of 1,180,000 units as of Sep 28, 2013,
up 12% from 1,056,000 units as of Sep 29, 2012.
MASI had cash and cash equivalents of $91.7 million as of Sep 28,
2013, up from $71.6 million as of Dec 29, 2012. The increase
reflects net cash generated from operations, offset by $19.8
million in cash for repurchasing one million shares of Masimo
stock in the first nine months of 2013. Capital lease obligations
rose to $355 thousand as of Sep 28, 2013 compared with $115
thousand as of Dec 29, 2012.
In the first nine months of 2013, cash flow from operating
activities dipped 15.4% to $48.2 million from $57.0 million in
the same period of 2012, mainly due to lower profits and higher
inventories. Capital expenditure decreased 11.5% to $6.9 million
compared with $7.8 million a year ago.
MASI upgraded its 2013 earnings per share guidance to $1.16 from
$1.14 based on encouraging year-to-date results. The upgraded EPS
exceeds the Zacks Consensus Estimate by a penny.
MASI develops innovative monitoring technologies that
significantly improve patient care -- helping solve unsolvable
problems. The company sells its products to hospitals, emergency
medical response organizations, and alternate care market through
its direct sales force and distributors, as well as to original
equipment manufacturer partners. Currently, it retains a Zacks
Rank #3 (Hold).
Other stocks that are also performing well in the medical
instruments industry include
Natus Medical Inc.
), both with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).
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MASIMO CORP (MASI): Free Stock Analysis
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