IRVINE, Calif. - Masimo (NASDAQ:MASI) Corporation (NASDAQ: MASI), known for its noninvasive monitoring technologies, has filed revised proxy materials with the Securities and Exchange Commission ahead of its Annual Meeting of Stockholders scheduled for September 19, 2024. Eligible stockholders of record as of August 12, 2024, are entitled to vote at the meeting.
The company has begun mailing letters to its stockholders, advocating for the election of its director nominees, Joe Kiani and Christopher Chavez, using the updated GOLD proxy card. Masimo emphasizes the importance of these nominations for the continuation of its growth and strategic execution.
The company recently reported strong financial results for the second quarter, indicating a 23% year-over-year revenue growth in its healthcare segment. This includes a notable 35% growth for SET Pulse Oximetry consumables. Based on these results, Masimo has raised its full-year healthcare revenue growth guidance to 9-10%.
Masimo has also reported securing a record level of new hospital conversion contracts worth $134 million, marking a significant increase from the previous year. The company's healthcare gross margin improved by 240 basis points year-over-year, and it is moving towards achieving a 30% operating margin goal.
Furthermore, Masimo is committed to a strategic separation of its consumer business, which could involve a joint venture or sale. The company has also generated $75 million in operating cash flow in the second quarter, enabling it to pay down $93 million of its debt. Masimo plans to eliminate its debt within the next 3-4 years.
The company's management and board have received support from independent industry experts and financial analysts, who have acknowledged the company's momentum and growth potential.
Masimo's leadership has been in discussions with Politan regarding the nomination of director candidates for the upcoming annual meeting. Despite multiple settlement proposals from Masimo, which included additional board representation for Politan, no agreement has been reached.
Stockholders are being advised to use the updated GOLD proxy card to vote, as previous votes on the original GOLD proxy card for the annual meeting initially scheduled for July 25, 2024, are no longer valid.
This news is based on a press release statement from Masimo Corporation.
In other recent news, Masimo Corporation has seen significant developments. The company reported a second-quarter revenue of $496 million, matching its preliminary figures. The healthcare division played a crucial role in this success, reporting revenues of $344 million, a 22% year-over-year increase. However, non-healthcare revenue experienced a decline, posting $152 million.
In analyst notes, Piper Sandler raised Masimo's shares target to $165 from $160, while maintaining an Overweight rating. Stifel and BTIG maintained a Buy rating, reiterating a $170 and $166 price target respectively.
In other company news, Masimo is in active discussions to sell a majority stake in its consumer business, potentially valued between $850 million to $950 million. The company also announced the FDA 510(k) clearance of its Masimo W1® medical watch for connectivity with the Masimo SafetyNet® telemonitoring solution. Institutional Shareholder Services (ISS) has advised shareholders of Masimo to vote for the election of two director candidates put forward by Politan, an activist investment firm.
InvestingPro Insights
As Masimo Corporation (NASDAQ: MASI) approaches its Annual Meeting of Stockholders, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Masimo's market capitalization stands at $6.59 billion, reflecting its position within the industry. Investors are paying attention to the company's Price to Earnings (P/E) ratio, which is currently 82.2, indicating a high valuation based on earnings. However, when adjusted for the last twelve months as of Q2 2024, the P/E ratio shows a slight decrease to 74.86.
The company's revenue has seen a dip of 7.76% over the last twelve months as of Q2 2024, which contrasts with the strong quarterly revenue growth of 9.01% reported in the second quarter of 2024. This dichotomy highlights the importance of evaluating both short-term and long-term financial trends. Despite this revenue fluctuation, Masimo's gross profit margin remains robust at 49.28%, showcasing the company's ability to maintain profitability.
InvestingPro Tips suggest that while analysts have revised their earnings expectations downwards for the upcoming period, the net income is expected to grow this year. This indicates a cautiously optimistic outlook for the company's financial performance. Additionally, Masimo's liquid assets are reported to exceed its short-term obligations, providing the company with financial flexibility. However, it's worth noting that the company operates with a moderate level of debt and is trading at high EBIT and EBITDA valuation multiples. Investors looking for further insights will find an additional 8 InvestingPro Tips available, which could provide a more nuanced understanding of Masimo's financial standing and market potential.
With an eye on the future, Masimo's strategic decisions, such as the potential separation of its consumer business and its efforts to pay down debt, are likely to be key discussion points at the upcoming Annual Meeting of Stockholders. The company's recent financial performance, combined with the insights from InvestingPro, will help shareholders make informed decisions as they cast their votes.
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