Masimo Earnings Preview

Motley Fool Staff
Updated

Masimo (NAS: MASI) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Tuesday, August 9. Masimo is a global medical technology company that develops, manufactures, and markets noninvasive patient monitoring products that improve patient care.

What analysts say:

What our community says:
CAPS All-Stars are solidly backing the stock, with 92.7% granting it an "outperform" rating. The community at large backs the All-Stars, with 94.1% assigning it a rating of "outperform." Fools are keen on Masimo, though the message boards have been quiet lately with only 48 posts in the past 30 days. Even with a robust four out of five stars, Masimo's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Masimo's profit has risen year over year by an average of 4.2%. The company's gross margin shrank by 2.4 percentage points in the last quarter. Revenue rose 14.5% while cost of sales rose 23.9% to $36.2 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

68%

70.2%

70.9%

70.2%

Operating Margin

22.5%

20.4%

22.6%

21%

Net Margin

15.9%

15.3%

16.3%

14.3%

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At the time thisarticle was published

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