Market News

Masimo’s 2021 Profit Outlook Misses Analysts’ Estimates

Masimo Corp. provided lower-than-projected profit guidance for 2021, while the medical instruments manufacturer expects adjusted earnings for last year to exceed the initial forecast of $3.46 per share.

Masimo (MASI) is scheduled to report its 2020 financial results on Feb. 23. Analysts expect the company to report adjusted earnings of $3.49 per share in 2020.

Further, the company forecasted to generate product revenues in the range of $1.139 billion to $1.144 billion, representing year-over-year growth of 21.6% to 22.2%. The company expects shipments of noninvasive technology boards and instruments of about 472,000 in 2020.

As for 2021, the company sees adjusted earnings of $3.80 per share, which is below the Street estimate of $3.82 per share. Product revenue is expected to generate $1.2 billion in 2021, which implies year-over-year growth of 4.9% to 5.4%. (See MASI stock analysis on TipRanks)

Following the announcement, Needham analyst Michael Matson maintained a Hold rating on the stock citing its valuation. Matson said “there are other med tech companies that should see stronger growth in 2021 as procedure volumes recover.”

Overall, the rest of the Street is cautiously optimistic on the stock. The Moderate Buy analyst consensus shows 3 Buys and 2 Holds. The average price target of $293 implies upside potential of 6.1%. Shares have increased about 68% over the past year.

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