Masimo (Nasdaq: MASI) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Tuesday, Feb. 14. Masimo is a global medical technology company that develops, manufactures, and markets noninvasive patient monitoring products that improve patient care.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on Masimo as six analysts rate it as a buy and only one analyst rates it as a sell.
  • Revenue Forecasts: On average, analysts predict $110.3 million in revenue this quarter. That would represent a rise of 4.5% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.23 per share. Estimates range from $0.21-$0.25.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 97.6% granting it an "outperform" rating. The community at large concurs with the All-Stars, with 94.1% assigning it a rating of "outperform." Fools are impressed with Masimo, though the message boards have been quiet lately with only 57 posts in the past 30 days. Masimo has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Masimo's income has fallen year-over-year by an average of 2.1% over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 5.1 percentage points in the last quarter. Revenue rose 3% while cost of sales rose 21.2% to $35.6 million from a year earlier.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Masimo has seen declining gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here is how Masimo has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

65.8%

68.7%

68.0%

70.2%

Operating Margin

18.2%

20.2%

22.5%

20.4%

Net Margin

14.3%

15.6%

15.9%

15.3%

One final thing: If you want to keep tabs on Masimo movements, and for more analysis on the company, make sure you add it to your Watchlist.