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Masimo (MASI) Reports Encouraging 2020 Preliminary Results

Masimo Corporation MASI recently reported select preliminary 2020 financial and operational results while also providing its full-year guidance.

The company is slated to report Masimo’s final fourth-quarter 2020 and full-year financial results, after the market closes, on Feb 23, 2021.

Results in Detail

Per the preliminary announcement, Masimo projects its full-year product revenues in the $1.13-$1.14 billion range. This indicates growth of 21.6-22.2% on a reported basis and a 21.6-22.1% rise on constant currency basis. Additionally, the company predicts 2020 shipments of noninvasive technology boards and instruments to be around 472,000.

Moreover, per the preliminary release, Masimo anticipates 2020 adjusted earnings per share (EPS ) to surpass the previously issued guidance of $3.46.

Highlights

Management recently announced that the company inked a deal to acquire the share capital of LiDCO Group Plc, which is a leading provider of advanced hemodynamic monitoring solutions (LiDCO). The transaction is expected to close in the first quarter of 2021 and contribute about one percentage point to the company’s 2021 revenue guidance growth rate. Also, the company projects the buyout to be slightly dilutive to its adjusted EPS in 2021 with accretion to earnings estimated to start in 2022.

Further, the company repurchased 0.5 million shares at worth $110.2 million during the fourth quarter of 2020.

 

2021 Financial Guidance

Going by the preliminary result, the company projects its product revenues to increase to $1.20 billion. This implies 4.9-5.4% growth on a reported basis and a 3.6-4% increase at constant currency.

The company expects its adjusted EPS to be $3.80.

Notably, the company’s adjusted 2021 revenue guidance includes about $15 million of year-over-year currency tailwinds.

Shares Down

Despite reporting upbeat preliminary results, shares of the company fell 5.3% to $261.76 on Jan 14.

Price Performance

In the past three months, the stock has gained 10.3% compared with 4.7% growth of its industry.

Zacks Rank and Key Picks

Masimo currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are PerkinElmer PKI, Hologic HOLX and IDEXX Laboratories IDXX. While Hologic sports a Zacks Rank#1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank  stocks here.

PerkinElmer has a projected long-term earnings growth rate of 19.5%.

Hologic has a projected long-term earnings growth rate of 17.4%.

IDEXX has an estimated long-term earnings growth rate of 15.8%.

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