Masimo Earnings: Here’s Why Investors are Excited Now

Masimo Corporation (NASDAQ:MASI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.45%.

Masimo Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.33% to $0.26 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 17.68% to $132.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Masimo Corporation reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.29. It beat the average revenue estimate of $129.09 million.

Quoting Management: Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “We finished 2012 with a 20% rise in fourth quarter product revenue. We’ve entered 2013 fully focused on advancing our mission, strategy, and 2013 objectives, which is to continue to grow our core SET Pulse Oximetry business by increasing our presence in critical care and the general ward, while leveraging our breakthrough rainbow Pulse CO-Oximetry platform to pursue new opportunities in and beyond the hospital setting.”

Key Stats (on next page)…

Revenue increased 11.03% from $119.07 million in the previous quarter. EPS increased 8.33% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.3 to a profit $0.29. For the current year, the average estimate has moved up from a profit of $1.09 to a profit of $1.1 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)