Street Calls of the Week
IRVINE, Calif. - Masimo (NASDAQ:MASI), currently valued at $7.72 billion in market capitalization, announced Tuesday it has completed the previously announced sale of its Sound United consumer audio business to HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. According to InvestingPro data, the company maintains a healthy financial position with liquid assets exceeding short-term obligations.
The medical technology company plans to prioritize share repurchases with proceeds from the transaction, according to the statement. InvestingPro analysis indicates that while Masimo is currently trading near its Fair Value, 8 analysts have recently revised their earnings expectations upward for the upcoming period.
"The completion of the Sound United sale is an important milestone in our ongoing efforts to focus on our core professional healthcare business," said Katie Szyman, Chief Executive Officer of Masimo. "With this chapter behind us, we are even better positioned to broaden Masimo’s patient impact, accelerate growth, and deliver stronger margins."
Masimo develops and produces monitoring technologies including measurements, sensors, patient monitors, and connectivity solutions for healthcare settings. The company’s SET pulse oximetry technology is estimated to be used on more than 200 million patients worldwide annually and is utilized at the top 10 U.S. hospitals ranked in the 2025 Newsweek World’s Best Hospitals listing.
Centerview Partners LLC and Morgan Stanley & Co. LLC served as financial advisors to Masimo for the transaction, with Sullivan & Cromwell LLP providing legal counsel.
The announcement follows the company’s earlier disclosure of its intention to divest the consumer audio business to concentrate on its healthcare operations.
In other recent news, Masimo Corporation reported strong second-quarter 2025 financial results, with sales reaching $370.9 million. This figure surpassed analyst expectations, including those from Stifel, which had projected sales of $368.0 million. The company achieved a 7.7% increase in sales year-over-year, excluding foreign exchange effects. Additionally, Masimo received FDA 510(k) clearance for expanded indications of its delta hemoglobin parameters with O3 Regional Oximetry, now applicable to all patient populations, including pediatric and neonatal.
Meanwhile, BTIG reiterated its Buy rating on Masimo stock, maintaining a price target of $198.00, following Apple’s announcement about reintroducing its Blood Oxygen feature for certain Apple Watch models. This feature had been disabled due to a legal dispute with Masimo but is now returning through software updates. In corporate governance news, Masimo announced the resignation of board member William Jellison, with no successor named at this time. Michelle Brennan, Chairman of the Board, acknowledged Mr. Jellison’s contributions during his tenure.
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