Masimo Earnings: Here’s Why Investors are Happy Now

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Masimo Corporation (NASDAQ:MASI) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.69%.

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Masimo Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.7% to $0.28 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 13.98% to $135.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Masimo Corporation reported adjusted EPS income of $0.28 per share. By that measure, the company met the mean analyst estimate of $0.28. It beat the average revenue estimate of $134.46 million.

Quoting Management: Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “Masimo is off to a solid start in 2013, with product revenue up 15%, fueled by a 14% rise in our core SET Pulse Oximetry business and a 24% rise in sales of rainbow SET Pulse CO-Oximetry and other rainbow related products. The 19% increase in driver shipments in the quarter further underscores the growing demand for our superior technology in hospitals and alternate care settings worldwide. In addition, we took advantage of strong cash flows in the quarter to repurchase 778,000 shares of Masimo common stock, demonstrating our confidence in the company’s strategy, business model and future growth prospects.”

Key Stats (on next page)…

Revenue increased 2.83% from $132.16 million in the previous quarter. EPS decreased 3.45% from $0.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.30 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.21 to a profit of $1.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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