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Masimo Corp MASI

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Narrow-Moat Masimo Facing Crosscurrents From COVID-19; Massive Shipments Highlight Strong Quarter

Aaron Degagne Equity Analyst

Analyst Note

| Aaron Degagne |

Narrow-moat Masimo continued its string of strong results and met our high expectations for the quarter, with year-over-year sales increase of 31% and net income of $55.8 million (EPS $0.96), a strong improvement over last year’s earnings of $44.9 million (EPS $0.79). With results tracking close to our full-year forecast, and nothing that would suggest meaningfully different longer-term results, we are maintaining our $183 per share fair value estimate. Though management provided greater clarity on board shipments on the earnings call, with a full-year board forecast of approximately 500,000, full-year guidance was not reinstated.

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Company Profile

Business Description

Masimo is an Irvine, California-based medical device business that focuses on noninvasive patient monitoring. It began by developing superior signal processing algorithms to measure blood oxygenation levels through pulse oximetry and has expanded this expertise into a wide range of measurements and applications. The company generates revenue globally, with the United States the largest market (68% of 2019 sales), followed by Europe, the Middle East, and Africa (20%), Asia and Australia (9%), and North and South America excluding the U.S. (3%).

Contact
52 Discovery
Irvine, CA, 92618
T +1 949 297-7000
Sector Healthcare
Industry Medical Instruments & Supplies
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type Aggressive Growth
Employees 5,300