Masimo Corporation
MASI
announced preliminary financial results for first-quarter 2022 on Mar 30. Following this release, shares of the company fell 2.4% till the last trading.
The company is scheduled to release
first-quarter results
on May 3 after the closing bell.
Prelim Q1 in Detail
As per the preliminary release, first-quarter 2022 product revenues are expected in the range of $285-$315 million. The Zacks Consensus Estimate of $331 million lies above the preliminary figure.
Despite witnessing strong customer demand in the first quarter, Masimo was unable to ship orders. Per management, the first quarter is likely to report lower sales compared with the company’s expectations, primarily due to shortages of critical components and other supply chain issues, including freight carrier delays.
FY22 Guidance
Masimo has reiterated its financial outlook for product revenues for full-year 2022 on the basis of its assumptions that it will be able fulfil its raised level of open orders through the remainder of the year.
The company continues to expect its product revenues for the full year to be $1,350 million, reflecting reported growth of 8.9%. The Zacks Consensus Estimate of $1.35 billion is in line with the company’s projections.
Masimo’s total product revenue projections also indicate growth of 9.5% at constant exchange rate.
Our Take
Masimo’s soft preliminary first-quarter 2022 performance projections raise our apprehensions. However, receipt of the FDA’s clearance for SedLine brain function monitoring for pediatric patients (one-17 years of age) and the SedLine Pediatric EEG (electroencephalogram) Sensor in February is encouraging. The latest clearance expands access to SedLine for all patients above the age of one in the United States, which is expected to contribute to its quarterly top line. The same month, Masimo announced a major expansion of Masimo SafetyNet, which is expected to provide better patient experience, raising our optimism on the stock.
Temple Health’s expansion of the use of Masimo technologies with Centroid (an advanced wireless patient position, orientation, activity and respiration rate sensor) at 100 beds across its ICU units is also promising.
Price Performance
Shares of the company have lost 45.5% compared with the
industry
’s 9.3% fall and the S&P 500’s decline of 3.9% over the past three months.
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Zacks Rank & Key Picks
Currently, Masimo carries a Zacks Rank #3 (Hold).
A few stocks from the broader medical space that investors can consider are
AMN Healthcare Services, Inc.
AMN
,
IDEXX Laboratories, Inc.
IDXX
and
Henry Schein, Inc.
HSIC
.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has lost 12.5% compared with the
industry
’s 18.1% fall over the past three months.
IDEXX, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 13%. IDXX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 18.6%.
IDEXX has lost 13.1% compared with the industry’s 9.3% decline over the past three months.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.
Henry Schein has gained 13.5% against the
industry
’s 0.5% fall over the past three months.
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