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Masimo’s (MASI) Preliminary Results for 2018 Cheer Investors


Masimo Corporation MASI announced preliminary results for 2018. The company is scheduled to release full financial results on Feb 26, 2019.

Revenues are forecasted to be $855-$858 million. The Zacks Consensus Estimate for revenues is pegged at $854.1 million, which lies within the range provided by the company.

Adjusted earnings per share are expected to be above the previously-issued figure of $2.92, reflecting 27% year-over-year growth. Our consensus mark currently pegs earnings of $2.92 per share.

Masimo Corporation Price and Consensus

Shares Up

Masimo’s full-year preliminary results seem to impress investors. Yesterday, share price of this Zacks Rank #4 (Sell) stock has improved5.1% to close at $112.11.

Masimo's shares have outperformed the industry in a year's time. The company’s shares gained 30.2% compared with the industry's growth of 1.5%. The current level is also higher than the S&P 500 index's decline of 6.1% over the same time frame. A broad product spectrum, positive tidings in the regulatory front and considerable focus on innovation provide a cushion to the company's stock.

Segmental Details

Masimo expects product revenues of $827-$830 million for the year, mirroring year-over-year growth of 12-12.4%. This also indicates constant-currency (cc) growth of 11.5-11.9%.

Royalty and other revenues for the year are forecasted to be $28 million.

Issues Guidance for 2019

Product revenues are anticipated to be $910 million, up 9.6-10% year over year.This also implies growth of 10.5-10.9% at cc.

Adjusted earnings per share are expected to be $3.05. The Zacks Consensus Estimate stands at $3.01 per share, below the given figure.

Management also noted that Masimo will face currency headwinds of worth $7 million in 2019.

Stocks to Consider

A few better-ranked stocks in the broader medical space are Veeva Systems Inc VEEV, Penumbra, Inc. PEN and OPKO Health, Inc OPK, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva Systems’ long-term earnings growth rate is projected to be19.5%.

Penumbra has a long-term earnings growth rate of 20%.

OPKO Health’s long-term earnings growth rate is projected to be12%.

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