The 10-second takeaway
For the quarter ended June 29 (Q2), Masimo met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share stayed the same.
Gross margins increased, operating margins dropped, net margins dropped.
Masimo reported revenue of $137.4 million. The 10 analysts polled by S&P Capital IQ looked for a top line of $136.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $122.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.30. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS of $0.30 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 66.4%, 10 basis points better than the prior-year quarter. Operating margin was 16.9%, 160 basis points worse than the prior-year quarter. Net margin was 12.4%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $132.3 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $549.4 million. The average EPS estimate is $1.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 166 members out of 175 rating the stock outperform, and nine members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 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 $24.07.
Is Masimo the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Masimo to My Watchlist.