The 10-second takeaway
For the quarter ended March 30 (Q1), Masimo beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded.
Margins contracted across the board.
Masimo booked revenue of $135.9 million. The 10 analysts polled by S&P Capital IQ looked for sales of $134.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $119.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.28 for Q1 were 3.7% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.9%, 60 basis points worse than the prior-year quarter. Operating margin was 17.0%, 170 basis points worse than the prior-year quarter. Net margin was 12.1%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $136.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $548.6 million. The average EPS estimate is $1.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 171 members out of 180 rating the stock outperform, and nine members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Masimo a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Masimo is hold, with an average price target of $23.81.
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