Masimo Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of medical-device maker Masimo Corp. (Nasdaq: MASI  ) fell as much as 10% in early trading today after reporting slower-than-expected Q2 sales growth.

So what: Revenue improved just 9% in the second quarter, rising from $100.1 million in last year's Q2 to $109.6 million this year. Wall Street wanted $111.3 million. The good news? Earnings rose 17% to $0.28 a share, about even with analyst expectations.

Now what: Investors nevertheless sided with Wall Street in selling the stock today. Yet they could be acting prematurely. Masimo trades for a slight discount to the long-term earnings growth that analysts expect -- a potential bargain, assuming bottom-line growth holds up. Do you find today's prices appealing? Are you selling? Weigh in using the comments box below.

Interested in more info on Masimo? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1537100, ~/Articles/ArticleHandler.aspx, 8/22/2014 12:19:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement