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Masimo (MASI) Beats Q1 Earnings & Revenues; FY16 View Up

Masimo Corp MASI reported earnings of 53 cents per share in the first quarter of 2016, which beat the Zacks Consensus Estimate by a dime and increased 39.5% on a year-over-year basis.

Masimo Corporation - Earnings Surprise | FindTheBest

Quarter Details

Revenues increased 10.8% year over year to $171.2 million, which was better than the Zacks Consensus Estimate of $165 million. Product revenues improved 10.8% year over year (11.7% at constant currency) to $163.3 million, while revenues from royalty increased 9.7% to $7.9 million.

Worldwide direct product revenues (86.3% of product revenues) increased 12.7% on a year-over-year basis to $140.9 million. OEM sales (13.7% of product revenues) rose 0.2% on robust demand for sensors and licenses.

Masimo rainbow revenues advanced 39.2% (37% at cc) to $16.9 million, driven by a large order from the Middle East. SpHb revenues improved 164% to $6.1 million backed by strong demand from the region.

During the first quarter, SET pulse oximetry and rainbow Pulse CO-Oximetry unit shipments (excluding handheld units) totaled 46,300. Per Masimo, worldwide installed base as of Apr 2, 2016, stood at 1,438,000 units, up 7.3% from 1,340,000 units as of Apr 4, 2015.

U.S. product revenues increased 5.8% to $113.5 million. International product revenues increased 24.2% from the year-ago quarter to $49.8 million (up 27.6% at constant currency), driven by strong demand from the EMEA region and Japan.

Guidance

For full-year 2016, Masimo projects total revenues of $677 million, up from the earlier projection of $670 million. Product revenues are expected at around $647 million, up from the previous guidance of $640 million, while Royalty revenue projection is maintained at $30 million. Rainbow revenues are expected to cross $68 million.

Masimo forecasts gross margin of approximately 64.7%. Management expects operating expenses of approximately $312 million, down from the earlier guidance of $317 million.

Masimo now projects earnings of $1.83 per share, up from the earlier projected figure of $1.69.

Zacks Rank & Stocks to Consider

Currently, Masimo carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the medical instruments industry include Edwards Lifesciences EW , IRadimed IRMD and Abiomed ABMD . While Edwards Lifesciences and IRadimed sport a Zacks Rank #1 (Strong Buy), Abiomed carries a Zacks Rank #2 (Buy).

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ABIOMED INC (ABMD): Free Stock Analysis Report

MASIMO CORP (MASI): Free Stock Analysis Report

IRADIMED CORP (IRMD): Free Stock Analysis Report

EDWARDS LIFESCI (EW): 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 Nasdaq, Inc.


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

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