The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Masimo missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share didn't change.
Gross margins were steady, operating margins contracted, net margins dropped.
Masimo reported revenue of $119.1 million. The 10 analysts polled by S&P Capital IQ looked for a top line of $121.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $104.0 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 $0.24. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.24 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.8%, about the same as the prior-year quarter. Operating margin was 15.1%, 310 basis points worse than the prior-year quarter. Net margin was 11.6%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $129.8 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $492.8 million. The average EPS estimate is $1.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 170 members out of 178 rating the stock outperform, and eight members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $25.94.
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