Masimo Posts Better Than Expected Q1 Earnings Despite 'Unexpected' Supply Chain Issues
- Masimo Corp's (NASDAQ: MASI) Q1 revenue increased 1.7% Y/Y (+3.2% on a constant currency basis) to $304.2 million, beating the consensus of $303.83 million.
- Excluding handheld and fingertip pulse oximeters, shipments of noninvasive technology boards and instruments were 75,700 in Q1 of 2022.
- The adjusted operating margin remained unchanged at 22.9%.
- The company reported an adjusted EPS of $0.93, compared to $0.90 a year ago, beating the consensus of $0.87.
- "We experienced strong demand for our products during the quarter while facing some unexpected supply chain challenges," said Masimo's Chairman and CEO Joe Kiani.
- Masimo held $720.1 million in cash & equivalents at the end of FY21.
- Guidance: Masimo expects FY22 adjusted EPS of $4.46 - $4.73, compared to the previous guidance of $4.34, compared to the consensus of $4.16.
- The company projects sales of $2 billion - $2.06 billion, compared to the consensus of $1.6 billion.
- Piper Sandler analyst Jason Bednar lowered Masimo's price target to $130 from $160 and kept a Neutral rating.
- The analyst says it is "simply too early with too many business unknowns for us to recommend investors" buy the shares.
- The Sound United updates included margins below prior assumptions and "many unanswered questions," Bednar writes.
- Needham also lowered the price target to $163, with a Buy rating unchanged.
- Price Action: MASI shares are up 5.75% at $124.75 during market trading on Wednesday.
Latest Ratings for MASI
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Needham | Upgrades | Hold | Buy |
| Feb 2022 | UBS | Maintains | Buy | |
| Feb 2022 | Piper Sandler | Downgrades | Overweight | Neutral |
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