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IRVINE, Calif. - Masimo (NASDAQ:MASI) Corporation (NASDAQ:MASI), a global medical technology company, has released preliminary financial results for its second quarter ending June 29, 2024. The company expects consolidated revenue to reach approximately $496 million, marking 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. This surge is attributed to a significant uptick in sensor utilization and hospital census compared to the previous year. Moreover, the company secured new healthcare contracts expected to bring in an incremental value of approximately $134 million.
Conversely, the non-healthcare revenue is projected to decline by 13% on a reported basis and 11% on a constant currency basis, totaling around $152 million. This decrease is contrasted by the company's success in the healthcare market, where Masimo has seen a record second quarter in terms of customer conversion to its technologies.
Chairman and CEO Joe Kiani expressed optimism about the growth and strength of the healthcare business and the substantial order backlog moving into the third quarter. Kiani highlighted the healthcare team's ability to significantly increase market share and the record value of new contracts as indicators of a healthy future for the company.
Masimo plans to discuss the complete financial results for the second quarter of 2024 and provide updated financial guidance for the fiscal year on its upcoming earnings call. The preliminary financial information is subject to adjustments following customary quarterly review procedures.
Masimo is known for its innovative monitoring technologies, sensors, patient monitors, and automation and connectivity solutions. The company emphasizes its mission to improve patient outcomes and reduce healthcare costs.
The information provided in this article is based on a press release statement from Masimo Corporation.
In other recent news, Masimo Corp is in active discussions to sell a majority stake in its consumer business, with a potential deal valued between $850 million to $950 million. This is according to a recent SEC filing.
In addition to this, the company reported strong Q1 2024 earnings, with healthcare revenues reaching $340 million. These recent developments have led to Masimo raising its guidance for healthcare revenues and non-GAAP EPS.
Piper Sandler has upgraded the company's stock from Neutral to Overweight, citing improvements in Masimo's core healthcare business. 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. These are the recent developments within Masimo Corporation.
InvestingPro Insights
As Masimo Corporation (NASDAQ:MASI) continues to report promising growth in its healthcare segment, the InvestingPro data and tips provide a deeper financial perspective on the company's performance and valuation.
InvestingPro Data indicates a market capitalization of $5.99 billion and a Price/Earnings (P/E) ratio of 75.28, which adjusts to 68.26 when looking at the last twelve months as of Q1 2024. This high earnings multiple suggests a market expectation of future growth, aligning with the company's optimistic revenue projections. Gross Profit Margin remains strong at 48.61%, reflecting the company's ability to maintain profitability in its operations.
InvestingPro Tips highlight that while net income is expected to grow this year, analysts have revised their earnings downwards for the upcoming period. This could be a sign of caution for investors, as expectations may be aligning with market challenges or revised company forecasts. Moreover, the company's liquid assets exceeding short-term obligations indicate a solid liquidity position, which is crucial for sustaining operations and investing in growth opportunities.
For investors looking for a comprehensive analysis, there are additional InvestingPro Tips available, which can provide a more detailed outlook on Masimo's financial health and market position. Using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable insights.
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