How are energy investors positioned?
On Tuesday, BTIG reaffirmed its Buy rating and $166.00 price target on shares of Masimo Corp . (NASDAQ:MASI) following the company's preliminary second-quarter report. The firm acknowledged Masimo's performance, which saw second-quarter revenues exceeding expectations, particularly in the Healthcare segment.
Masimo's Healthcare revenue reached $344 million, marking a 22% year-over-year reported growth and a 23% growth on a constant currency basis. This figure surpassed the consensus estimate of $335.0 million. On the other hand, the non-healthcare revenue experienced a decline, posting $152 million, which was a 13% decrease reported and an 11% decline on a constant currency basis, falling short of the expected $158.7 million.
The company's consumable and service revenue demonstrated a robust year-over-year constant currency increase of 29%. Additionally, driver shipments for the quarter were approximately 58,000, which not only exceeded the forecast of around 56,400 but also indicated an improvement from the first quarter's figures.
The installed base of drivers is now at 2.58 million, and the year-to-date revenue per driver has reached an annualized figure of $474. This performance suggests a recovery that extends beyond the 2022 levels and excels past pre-pandemic figures. Furthermore, Masimo is expected to benefit from new healthcare contracts worth approximately $134 million, setting a record for the second quarter.
BTIG highlighted the positive outcome of the preliminary report for Masimo, stating that it was a good print for the company. The firm also mentioned its intention to wait for the full second-quarter results before updating its forecast model and reiterated its Buy rating without making any changes to its forecast.
In other recent news, Masimo Corporation reported a steady growth in its Q2 2024 revenue, reaching approximately $496 million. This marked a 9% increase on a reported basis and a 10% rise on a constant currency basis compared to the same period last year.
The healthcare segment of Masimo's business is anticipated to generate around $344 million, showing a robust growth of 22% on a reported basis and 23% on a constant currency basis.
Masimo Corp is also in active discussions to sell a majority stake in its consumer business, with a potential deal valued between $850 million to $950 million. This development has led to Masimo raising its guidance for healthcare revenues and non-GAAP EPS.
In terms of analyst upgrades, Piper Sandler has upgraded the company's stock from Neutral to Overweight, citing improvements in Masimo's core healthcare business.
In other developments, Masimo's Chief Operating Officer, Bilal Muhsin, has disclosed a conditional resignation, contingent upon the removal of Joe Kiani as Chairman of the Board and Chief Executive Officer. Lastly, the company is opposing a takeover bid by Politan, urging shareholders to vote for the reelection of its founder, Joe Kiani, and director nominee Christopher Chavez.
InvestingPro Insights
As Masimo Corp. (NASDAQ:MASI) continues to demonstrate robust growth in its Healthcare segment, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, Masimo has a market capitalization of $5.76 billion and is trading at a high earnings multiple, with a P/E ratio of 68.26 based on the last twelve months as of Q1 2024. Despite a challenging revenue growth rate, which saw a decline of nearly 14% over the last twelve months as of Q1 2024, the company's gross profit margin remains strong at 48.61%.
Two notable InvestingPro Tips for Masimo include the expectation of net income growth this year and the fact that the company's liquid assets exceed its short-term obligations, highlighting a stable financial position. These insights may reassure investors of the company's potential for profitability and its ability to manage short-term financial commitments.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available that delve into aspects such as earnings revisions by analysts and valuation multiples. To gain access to these insights and make an informed investment decision, consider using the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.