Editor's note: A correction was added to this article on May 4th, 2017. The article originally reported that Masimo missed earnings estimates when it had, in fact, exceeded them.

What happened

Shares of Masimo Corporation (NASDAQ:MASI), a medical technology company focused on patient monitoring technology, are down about 13.2% as of 11 a.m. EDT on Thursday. Although the company had stellar first-quarter earnings, the AP accidentally reported an earnings miss -- likely driving down the share price. See their correction here. The company actually beat estimates by $0.03 per share.

So what

After the bell yesterday, the company announced first-quarter GAAP results that showed a huge earnings boost to $0.82 per share, but a one-time tax benefit pumped up the official figure. Adjusting for the tax benefit, adjusted earnings came in at $0.57 per share. That was about 7.5% higher than the same period last year. Masimo Corporation's stock price had soared 144% during the year ahead of yesterday's earnings release, so even a slight hiccup was bound to lead to a market thumping.

Downward-sloping chart.

Image source: Getty Images.

Perceived earnings miss aside, it was a solid quarter for the maker of non-invasive patient monitoring devices. On the top line, Masimo beat estimates by about $3 million with $186.3 million in first-quarter revenue that was 8.8% higher than the previous-year period.

The first quarter of this year wasn't the company's best in terms of product shipments -- it was the third best. Masimo shipped about 47,900 oxygen meters, raising its global base of installed products 6.1% to about 1.525 million units.

Now what

You wouldn't know it by looking at today's price movement, but Masimo Corporation raised its full-year outlook a few pegs. Total revenue is expected to reach $759 million this year, a slight bump from previous expectations of $752 million.

Today's market beatdown brings the price of Masimo stock down to about 6.8 times trailing sales from about 8 times sales earlier this week. By most yardsticks, the stock still looks somewhat pricey, but Masimo has a solid lead in an oxygen meter niche expected to grow to about $2.3 billion in just a few years. If the company can ride this trend while staying a step ahead of the competition, today's pullback could be a bargain opportunity.

Cory Renauer has no position in any stocks mentioned. The Motley Fool recommends Masimo. The Motley Fool has a disclosure policy.