On Thursday, Needham reiterated a Hold rating for Masimo Corp. (NASDAQ:{{16565|MAMASI) after the medical technology company preannounced its fourth-quarter 2024 revenue, which surpassed consensus estimates.
Masimo reported an expected fourth-quarter revenue of approximately $601 million, marking a year-over-year growth of about 9%, versus the consensus estimate of $592 million.
The company's stock, currently trading at $169.51, has shown remarkable momentum with a 56.6% gain over the past six months. According to InvestingPro analysis, while the company maintains a GOOD Financial Health score, it appears to be trading above its Fair Value.
The company anticipates its fourth-quarter healthcare revenue to be around $368 million, reflecting an 8% increase year-over-year, slightly missing the consensus of $370 million. Meanwhile, non-healthcare revenue is projected to reach $232 million, an 11% growth year-over-year, which is above the consensus estimate of $221 million. For the entire year of 2024, Masimo forecasts total revenue to be approximately $2.094 billion, indicating a 2% growth from the previous year.
This includes healthcare revenue of $1.395 billion, up 9% year-over-year, and non-healthcare revenue of $699 million, which shows a decline of roughly 10% year-over-year. The company operates with a moderate debt level and maintains a healthy current ratio of 2.01.
Masimo's management also provided guidance for the non-GAAP earnings per share (EPS) for 2024, expecting it to exceed $4.10, compared to the consensus of $4.12 and the previous guidance range of $3.95 to $4.10. Looking ahead to 2025, the company forecasts healthcare revenue to be between $1.50 billion and $1.53 billion, an 8-11% increase, surpassing the consensus of $1.442 billion.
Additionally, Masimo anticipates a non-GAAP operating profit of $398 to $406 million, which is higher than the consensus of $380 million, a non-GAAP operating margin of at least 26.5%, and non-GAAP EPS guidance of $4.90 to $5.10, above the consensus of $4.74. For deeper insights into Masimo's valuation and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company's financial health and growth trajectory.
Needham stated that they intend to wait until Masimo reports its full fourth-quarter 2024 financial results on February 25, 2025, before updating their financial model. The company currently trades at a P/E ratio of 115.47, reflecting high growth expectations from investors.
In other recent news, Masimo Corp. has seen several key developments. The company reported a fourth-quarter 2024 revenue of $601 million, surpassing the consensus estimate of $592 million.
This represents roughly a 9% year-over-year growth. In the same period, its Healthcare segment is expected to reach $368 million, showing an 8% increase, while its Non-Healthcare revenue is anticipated to be $232 million, marking an 11% growth. For the full year of 2024, Masimo estimates total revenue to reach $2.094 billion, indicating a modest 2% growth year-over-year.
Furthermore, Needham maintained its Hold rating on Masimo shares, while Raymond (NS:RYMD) James reiterated its Outperform rating and increased the company's price target. Piper Sandler also highlighted Masimo as a top idea, expressing confidence in the company's ability to beat Q4 projections and surpass 2025 consensus estimates.
In terms of organizational changes, Tao Levy, the company's Executive Vice President of Business Development, had his employment terminated as part of Masimo's strategic shift to focus on its core healthcare business. Moreover, Michelle Brennan was appointed as interim Chief Executive Officer for a six-month term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.