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Benzinga
Benzinga
Business
Vandana Singh

Masimo Posts Better Than Expected Q1 Earnings Despite 'Unexpected' Supply Chain Issues

  • Masimo Corp's (NASDAQ:MASIQ1 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.
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