U.S. Markets closed
  • S&P 500

    4,432.99
    -40.76 (-0.91%)
     
  • Dow 30

    34,584.88
    -166.44 (-0.48%)
     
  • Nasdaq

    15,043.97
    -137.96 (-0.91%)
     
  • Russell 2000

    2,236.87
    +3.96 (+0.18%)
     
  • Crude Oil

    71.96
    -0.65 (-0.90%)
     
  • Gold

    1,753.90
    -2.80 (-0.16%)
     
  • Silver

    22.42
    -0.33 (-1.44%)
     
  • EUR/USD

    1.1732
    -0.0040 (-0.3402%)
     
  • 10-Yr Bond

    1.3700
    +0.0390 (+2.93%)
     
  • Vix

    20.81
    +2.12 (+11.34%)
     
  • GBP/USD

    1.3737
    -0.0059 (-0.4286%)
     
  • USD/JPY

    109.8950
    +0.1770 (+0.1613%)
     
  • BTC-USD

    48,649.69
    +1,205.76 (+2.54%)
     
  • CMC Crypto 200

    1,193.48
    -32.05 (-2.62%)
     
  • FTSE 100

    6,963.64
    -63.84 (-0.91%)
     
  • Nikkei 225

    30,500.05
    +176.71 (+0.58%)
     

Masimo (MASI) Down 0.3% Since Last Earnings Report: Can It Rebound?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

It has been about a month since the last earnings report for Masimo (MASI). Shares have lost about 0.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Masimo due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Masimo  Earnings and Revenues Beat Estimates in Q2

Masimo Corporation  reported second-quarter 2020 adjusted earnings per share  of 85 cents, which surpassed the Zacks Consensus Estimate of 78 cents by 8.9%. Earnings improved 11.8% from the year-ago quarter.

Total revenues (including Royalty) improved 31.1% year over year to $301 million and beat the Zacks Consensus Estimate of $289.33 million by 4%.

Segmental Analysis

Product Revenues

Product revenues in the second quarter totaled $301 million, up 31.1% from the year-ago quarter and 32% at constant currency (cc).

Per management, shipments of non-invasive technology boards and monitors surged 174% to a record 165600 in the quarter.

Margin Analysis

In the quarter under review, gross profit totaled $191.6 million, up 24.1% year over year. Gross margin was 63.6%, down 355 basis points (bps).

Adjusted operating profit in the quarter totaled $62.2 million, up 19.7% from a year ago. Adjusted operating margin contracted 196 bps to 20.7% in the quarter.

2020 Guidance

Given the uncertainties surrounding the COVID-19 pandemic and its impact on the company’s normal business patterns, Masimo has not issued any guidance for 2020.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -10.89% due to these changes.

VGM Scores

Currently, Masimo has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Masimo has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Masimo Corporation (MASI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.