Masimo Earnings Beat, EPS Guidance Up - Analyst Blog


Masimo Corporation ( MASI ) 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 $132.0 million.

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 CryoLife, Inc. ( CRY ) and Natus Medical Inc. ( BABY ), both with a Zacks Rank #1 (Strong Buy), and AngioDynamics Inc. ( ANGO ) with a Zacks Rank #2 (Buy).

ANGIODYNAMICS (ANGO): Free Stock Analysis Report

NATUS MEDICAL (BABY): Free Stock Analysis Report

CRYOLIFE INC (CRY): Free Stock Analysis Report

MASIMO CORP (MASI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ANGO , BABY , CRY , MASI

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