Masimo Shares Decline as Fourth Quarter Revenue Expectations Disappoint

IRVINE, California - Masimo Corporation (NASDAQ:MASI) reported third-quarter earnings that exceeded analyst expectations, but shares dropped by 7.5% as fourth-quarter revenue guidance fell short of forecasts.
The medical technology company announced a corrected earnings per share of $0.98, surpassing the analyst consensus of $0.84. Revenue came in at $504.6 million, slightly above the expected $502.87 million and reflecting an 11.5% increase year-over-year.
However, Masimo's fourth-quarter revenue guidance range of $581-$611 million was below the analyst consensus of $607.5 million at the midpoint. The company expects earnings per share to be between $1.35 and $1.50, compared to the consensus of $1.41.
Masimo raised its full-year 2024 earnings per share forecast to a range of $3.95-$4.10, above the consensus of $3.88. Annual revenue is expected to fall within the range of $2.075-$2.105 billion, consistent with the $2.1 billion estimate.
Interim CEO Michelle Brennan commented on the results: "We are pleased to report a strong third-quarter performance led by our core healthcare segment. Thanks to the dedication and energy of our employees, we have experienced a seamless transition that has not led to any disruptions in our business or departures of critical talent since our Annual Meeting."
During the quarter, the company shipped 60,500 non-invasive technology cards and devices. Healthcare revenue, which makes up a large portion of Masimo's business, increased by 11.7% year-on-year on a constant currency basis, reaching $343.3 million.