Masimo Reports Strong Q3 Earnings but Shares Fall

IRVINE, California – Masimo (NASDAQ: MASI) Corporation reported third-quarter earnings that exceeded analyst expectations, but its shares fell by 7.5% due to disappointing fourth-quarter revenue guidance.

The medical technology company posted adjusted earnings per share (EPS) of $0.98 for Q3, surpassing the analyst consensus of $0.84. Revenue reached $504.6 million, slightly above the $502.87 million estimate, marking an 11.5% year-over-year growth.

However, Masimo's fourth-quarter revenue guidance of $581-611 million did not meet the midpoint estimate of $607.5 million. The company anticipates fourth-quarter EPS between $1.35 and $1.50, compared to the $1.41 consensus.

For the full year 2024, Masimo raised its EPS guidance to $3.95-4.10, exceeding the $3.88 consensus. Full-year revenue is projected at $2.075-2.105 billion, aligning with the $2.1 billion estimate.

Michelle Brennan, Interim CEO, commented, "We are pleased with our strong third-quarter performance, driven by our core healthcare segment. We appreciate our employees' commitment, ensuring a seamless transition since our Annual Meeting without disruption to our business or critical talent."

The company shipped 60,500 noninvasive technology boards and instruments during the quarter. Healthcare revenue, which constitutes the majority of Masimo's business, grew 11.7% on a constant currency basis to $343.3 million.

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