Masimo Earnings Preview

Motley Fool Staff
Updated

Masimo (NAS: MASI) came in under analyst's estimates last quarter, but now have a chance to fix things this quarter. The company will unveil its latest earnings on Tuesday, Feb. 14. Masimo is a global medical technology company that develops, manufactures, and markets noninvasive patient monitoring products that improve patient care.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on Masimo as six analysts rate it as a buy and only one analyst rates it as a sell.

  • Revenue Forecasts: On average, analysts predict $110.3 million in revenue this quarter. That would represent a rise of 4.5% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.23 per share. Estimates range from $0.21-$0.25.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 97.6% granting it an "outperform" rating. The community at large concurs with the All-Stars, with 94.1% assigning it a rating of "outperform." Fools are impressed with Masimo, though the message boards have been quiet lately with only 57 posts in the past 30 days. Masimo has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Masimo's income has fallen year-over-year by an average of 2.1% over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 5.1 percentage points in the last quarter. Revenue rose 3% while cost of sales rose 21.2% to $35.6 million from a year earlier.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Masimo has seen declining gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here is how Masimo has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

65.8%

68.7%

68.0%

70.2%

Operating Margin

18.2%

20.2%

22.5%

20.4%

Net Margin

14.3%

15.6%

15.9%

15.3%

One final thing: If you want to keep tabs on Masimo movements, and for more analysis on the company, make sure you add it to your Watchlist.

At the time thisarticle was published The Motley Fool owns shares of Masimo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement