Masimo Beats on Both Top and Bottom Lines

Masimo (Nasdaq: MASI  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Masimo beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
Masimo logged revenue of $132.2 million. The nine analysts polled by S&P Capital IQ expected a top line of $128.5 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $112.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.29. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.26 for Q4 were 13% higher than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.0%, 50 basis points better than the prior-year quarter. Operating margin was 16.9%, 1,400 basis points worse than the prior-year quarter. Net margin was 11.4%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $133.0 million. On the bottom line, the average EPS estimate is $0.29.

Next year's average estimate for revenue is $540.1 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 168 members out of 177 rating the stock outperform, and nine members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Masimo a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Masimo is hold, with an average price target of $24.69.

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