The 10-second takeaway
For the quarter ended March 31 (Q1), Masimo met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted.
Margins contracted across the board.
Masimo chalked up revenue of $119.2 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $118.5 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $113.0 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 $0.27. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS of $0.27 for Q1 were 10.0% lower than the prior-year quarter's $0.30 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 66.5%, 150 basis points worse than the prior-year quarter. Operating margin was 18.7%, 380 basis points worse than the prior-year quarter. Net margin was 13.2%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.4 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $484.8 million. The average EPS estimate is $1.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 165 members out of 173 rating the stock outperform, and eight members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Masimo a green thumbs-up, and one gives 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 $24.44.
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