Masimo Corporation MASI reported fourth-quarter 2020 adjusted earnings per share (EPS) of 98 cents, which surpassed the Zacks Consensus Estimate of 87 cents by 12.6%. The figure also improved 7.6% from the year-ago quarter.Further for 2020, adjusted EPS came in at $3.60, beating the Zacks Consensus Estimate by 3.2%.The bottom line also grew 11.8% year over year.RevenuesFor the fourth quarter, total revenues (including Royalty and other revenues) improved 19.2% year over year to $295.1 million and beat the Zacks Consensus Estimate by 1.9% as well.Moreover, for 2020, revenues came in at $1.14 billion, up 22% year over year. Meanwhile, the topline was in line with the Zacks Consensus Estimate.Segmental AnalysisProduct RevenuesProduct revenues in the fourth quarter totaled $295.1 million, up 19.2% from the year-ago quarter and 18.1% at constant currency (cc).Per management, shipments of non-invasive technology boards and instruments (excluding handheld and fingertip pulse oximeters) surged 35.2% to 83,000 in the quarter.Margin AnalysisIn the quarter under review, gross profit totaled $186.9 million, up 11.9% year over year. Gross margin was 63.4%, down 409 basis points (bps).Total operating costs came in at $122 million, up 15.8%.Operating profit in the quarter totaled $64.9 million, up 5.4% from the year-ago level. Operating margin contracted 288 bps to 21.9% in the quarter. Masimo Corporation Price, Consensus and EPS Surprise Masimo Corporation price-consensus-eps-surprise-chart | Masimo Corporation Quote Cash PositionThe company exited the fourth quarter of 2020 with cash and cash equivalents of $641.4 million compared with $567.7 million at the end of the year-ago period. Cumulative net cash provided by operating activities came in at $210.9 million compared with $221.6 million in the year-ago period.2021 GuidanceTotal revenues are projected at $1.20 billion. The Zacks Consensus Estimate for the metric is pegged at $1.20 billion. Adjusted EPS is projected at $3.80. The Zacks Consensus Estimate for the same is pegged at $3.76.In ConclusionMasimo exited the fourth quarter on a strong note. The company continues to gain from its key Product segment, which witnessed solid growth in the quarter under review. The company’s non-invasive technology shipments also surged in the quarter. In fact, management foresees increased shipments for the quarters ahead.The recent launch of the Masimo SafetyNet, designed to help fight the coronavirus pandemic, continues to buoy optimism. The outbreak boosted demand for the company’s products among the direct and OEM customers.On the flip side, contraction of both margins is a concern. Masimo’s Royalty and Other segment saw no contribution during the quarter. Further, the company faces fierce competition from the MedTech bigwigs.Zacks Rank & Key PicksCurrently, Masimo carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. HOLX, Abbott Laboratories ABT and AngioDynamics, Inc. ANGO, each presently carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of two cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.Biggest Tech Breakthrough in a GenerationBe among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.See 8 breakthrough stocks now>> 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 AngioDynamics, Inc. (ANGO): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Abbott Laboratories (ABT): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research