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Masimo Corporation (NASDAQ:MASI), currently trading at $150.13 and showing strong liquidity with a current ratio of 2.17, announced today that it expects the recent cybersecurity incident to have a non-material impact on its 2025 revenue and customer order fulfillment. According to InvestingPro analysis, the company appears to be trading above its Fair Value. The medical technology company, known for its noninvasive patient monitoring technologies and generating $2.13 billion in revenue over the last twelve months, stated in a recent SEC filing that its manufacturing operations are near full capacity and critical systems for order taking, distribution, and shipping are fully operational.
The cybersecurity breach, which was first reported on May 6, 2025, involved unauthorized activity on Masimo’s network. The company has since taken measures to mitigate and remediate the incident with the aid of third-party cybersecurity experts and has been in coordination with law enforcement.
Despite the breach, Masimo reassured investors that it is on track with the financial outlook it updated on May 6, 2025, for the remainder of the fiscal year. While analysts have revised earnings expectations downward, InvestingPro data indicates that net income is expected to grow this year. The company also confirmed that it holds cybersecurity insurance which is expected to cover the majority of the incurred remediation costs, which are anticipated to be non-recurring.
In the filing, Masimo did not report any significant delays in order processing and emphasized that it is working to optimize its systems to handle any backlog promptly. The company’s proactive approach and transparent communication regarding the cyber incident reflect its commitment to maintaining operations and investor confidence.
The statement in the SEC filing also included cautionary language about forward-looking statements, reminding investors that these are based on the information available at the time and are subject to change. For a comprehensive analysis of Masimo’s financial health and future prospects, investors can access detailed Pro Research Reports and 10+ additional ProTips through InvestingPro.
This report is based on statements from a press release and the information contained in the SEC filing.
In other recent news, Masimo Corporation reported a strong first-quarter performance, surpassing analyst expectations with earnings per share (EPS) of $1.36, significantly above the forecasted $1.21. The company’s revenue for the quarter reached $372 million, exceeding the anticipated $367.84 million, driven by robust growth in consumables and capital equipment sales. Masimo also announced the sale of its Consumer Audio division to Harman International for approximately $350 million, a strategic move expected to close by the end of 2025, allowing the company to focus on its core healthcare products.
Analyst firms have responded to these developments with mixed adjustments to Masimo’s stock price target. Stifel has lowered its price target to $180 from $190 while maintaining a Buy rating, citing the company’s strong quarterly performance and strategic divestment. BTIG also adjusted its price target to $193 from $206, maintaining a Buy rating and noting the positive reception of the Consumer Audio sale among investors. Despite the earnings beat, Masimo is facing challenges, including tariff impacts and a cybersecurity incident, though the company does not anticipate these issues will affect its guidance.
Masimo remains on track to meet its full-year revenue outlook of $1.50-$1.53 billion, reflecting an 8-11% increase on a constant currency basis. The company is also focusing on AI-based innovations in healthcare monitoring and has plans to share more details about its product pipeline at an Investor Day later in the year. Additionally, Masimo’s operating margin for the first quarter was reported at 28.8%, outperforming expectations and demonstrating the company’s progress in profitability.
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