Masimo’s Q1 Exceeds Revenue Guidance; Raises Full-Year Projection

Masimo has announced its financial results for the first quarter of its fiscal year 2024 (ended March 30).
 
The Irvine, Calif.-based company reported Q1 revenue of $492.8 million, a 12.8% percent drop from the previous year’s period. Healthcare segment revenue reached $339.6 million, falling a slight 2%. The company cited a challenging comparison to the previous year’s Q1 as the main reason for the drop.
 
The company’s non-healthcare related sales—comprised of consumer audio visual and sound related products—fell 29.8% to $153.2 million. Masimo said these revenues were in-line with its guidance because the business has stabilized, despite a tough environment affecting discretionary consumer spending.
 
Consolidated GAAP operating income was $34.0 million and consolidated non-GAAP operating income was $67.9 million. Consolidated GAAP net income was $18.9 million, or $0.35 per diluted share. Consolidated non-GAAP net income was $41.9 million, or $0.77 per diluted share.
 
The company also highlighted that shipments of noninvasive technology boards and instruments were 50,400, excluding handheld and fingertip pulse oximeters.
 
As a result, Masimo increased its full-year guidance for healthcare revenues to a range of $1.35-$1.38 billion and non-GAAP earnings per share (EPS) to a range of $3.54-$3.70.
 
“It’s good to see that our business is reaching a steady state after a period of robust growth during Covid and the wake of volatility that followed,” said Masimo chairman and CEO Joe Kiani. “Healthcare revenues were at the high end of our guidance range, driven by strong sensors orders in the U.S. and Europe. Our team’s incredible effort and success in moving the bulk of our sensor manufacturing from Mexico to Malaysia yielded improved gross margins ahead of schedule for healthcare. Based on our first quarter results and a more positive outlook for 2024, we are increasing our guidance for healthcare revenues and non-GAAP EPS. At the behest of the majority of our shareholders, we are pursuing a separation of our consumer business. Management is working diligently to finalize the proposed structure and options for our board of directors to review. I am hopeful that we can create two businesses that can each achieve great results, and together improve life.”

Masimo Q1 and recent highlights

• Evaluation of a proposed separation of its consumer business
• FDA clearance of the MightySat Medical over-the-counter, fingertip pulse oximeter
• FDA nod for the Stork over-the-counter smart baby monitor