Masimo Corporation MASI announced preliminary revenues for the fourth quarter and full year 2024 on Thursday. Following the robust preliminary results, the company’s shares gained nearly 0.1% till Friday’s closing.

The company is scheduled to release fourth-quarter results on Feb. 25.

Per the preliminary report, fourth-quarter 2024 total revenues are estimated to be $601 million, up 9% year over year both on a reported basis and at constant exchange rate (CER). The Zacks Consensus Estimate of $594.6 million lies below the preliminary figure.

Healthcare revenues in the quarter are estimated to be $368 million (up 8% year over year on a reported basis and 9% at CER), while Non-healthcare revenues are estimated to be $232 million (up 11% year over year both on a reported basis and at CER).

Per management, shipments of non-invasive technology boards and instruments are expected to be 65 thousand during the fourth quarter of 2024.

MASI’s Full-Year Preliminary Results

Per the preliminary report, total revenues for the full year are estimated to be $2,094 million, up 2% from the comparable 2023 period on a reported basis and 3% at CER. The Zacks Consensus Estimate is currently pegged at $2.09 billion.

Healthcare revenues for 2024 are estimated to be $1,395 million (up 9% from the comparable 2023 period on a reported basis and 10% at CER), while Non-healthcare revenues are estimated to be $699 million (down 10% from the comparable 2023 period on a reported basis and 9% at CER).

Per management, adjusted earnings per share (EPS) is expected to exceed $4.10, which represents the high end of Masimo’s prior guidance range of $3.95-$4.10. The Zacks Consensus Estimate of $4.04 lies below the preliminary figure.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Masimo’s Guidance for 2025

Masimo has initiated its full-year 2025 guidance.

Healthcare revenues for 2025 are estimated to be between $1,500 million and $1,530 million, representing growth of 8% from the comparable 2024 period on a reported basis and 11% at CER. 

Adjusted EPS is expected to be in the range of $4.90-$5.10. The Zacks Consensus Estimate is currently pegged at $4.49.

A Brief Q4 Analysis of MASI

On the third quarter of 2024 earnings call in November 2024, Masimo’s management commented that the Non-healthcare business continued to be affected by the weakening environment for luxury consumer purchases and the slowness in the housing market, which affects product installations and upgrades. However, management has indicated an improvement in Non-healthcare revenues in the fourth-quarter preliminary results. This is expected to have been driven by a rebound in the luxury consumer purchases and housing market, raising our optimism about the business.

With the third quarter of 2024 earnings release, management confirmed that the quarter’s performance was driven by Masimo’s core healthcare segment. Management has also indicated robust growth in its Healthcare revenues in the fourth quarter, indicating robust product adoption.

Management has been working toward positioning Masimo to achieve its significant long-term growth potential by capitalizing on the opportunities ahead of the company, including through its ongoing review of the product portfolio and research and development projects. The company is in the process of allocating resources to fewer projects, concentrating on sizable market opportunities that address clear unmet needs and reducing spending in areas that are not contributing to its long-term growth objectives. Management is also progressing on its strategic review of the consumer business and is focused on delivering the best outcome for the shareholders. This looks promising for the stock.

The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.

Masimo’s Price Performance

Shares of the company have gained 28.4% between Sept. 29 and Dec. 28, 2024, against the industry’s 3.9% decline. The S&P 500 has gained 4.8% during the same time frame.

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MASI’s Zacks Rank & Other Key Picks

Currently, Masimo carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, Cencora, Inc. COR and DaVita Inc. DVA.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health’s shares have gained 8.5% compared with the industry’s 1.2% growth between Sept. 29 and Dec. 28, 2024.

Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.9%.

Cencora has gained 0.9% against the industry’s 14.4% decline between Sept. 29 and Dec. 28, 2024.

DaVita, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 10.6%.

DaVita’s shares have lost 5.4% compared with the industry’s 8.2% decline between Sept. 29 and Dec. 28, 2024.

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