NASDAQ$MASI

Masimo Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Masimo's financial performance declined in healthcare revenue and earnings, but gained new hospital customers and retained existing ones.

Masimo Corporation reported consolidated revenue of $455.3 million for Q2 2023, with healthcare revenue at $281.1 million and non-healthcare revenue at $174.2 million. GAAP net income was $15.7 million, or $0.29 per diluted share, while non-GAAP net income was $33.7 million, or $0.62 per diluted share. The company gained new hospital customers at a record level but is disappointed with the results due to lower inpatient volumes and delayed large orders.

  • Consolidated revenue reached $455.3 million.
  • Healthcare revenue amounted to $281.1 million.
  • Non-healthcare revenue totaled $174.2 million.
  • GAAP net income per diluted share was $0.29; Non-GAAP net income per diluted share was $0.62.

Headline financials

Total Revenue

$455M

Previous: $565M-19.5%
EPS (adj)

$0.62

Previous: $1.35-54.1%
Capital Expenditures

-$20.4M

Previous: -$30M+32.0%
Free Cash Flow

-$4.7M

Previous: -$11.9M+60.5%
Net Income

$15.7M

Previous: $18.1M-13.3%
Operating Income

$29.3M

Previous: $22.1M+32.6%
Gross Profit

$221M

Previous: $258M-14.3%
Cash & Equivalents

$151M

Previous: $218M-30.9%
Total Assets

$3.01B

Previous: $2.96B+1.7%
Stock-Based Comp

-$8.6M

Previous: $17.3M-149.7%

Revenue & EPS history

Masimo · Revenue · Quarterly

$455M

Q2 2023-19.5%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The Company provided the following updated estimates for its third-quarter 2023 and full-year financial guidance: The company expects GAAP consolidated revenue of $475 to $525 million and updated full year 2023 revenue of $2,100 to $2,200 million.

Tailwinds

  • Third-quarter 2023 GAAP consolidated revenue is projected between $475 million and $525 million.
  • Third-quarter 2023 GAAP healthcare revenue is expected to range from $305 million to $335 million.
  • Third-quarter 2023 GAAP non-healthcare revenue is forecasted between $170 million and $190 million.
  • Third-quarter 2023 GAAP operating income is guided to be between $27 million and $37 million.
  • Third-quarter 2023 GAAP net income per diluted share is projected between $0.19 and $0.32.

Headwinds

  • Full-year 2023 healthcare revenue guidance includes year-over-year foreign currency headwinds of $1 million.
  • Third-quarter 2023 revenue guidance includes year-over-year foreign currency tailwinds of $2 million.
  • Guidance assumes inpatient volumes will not return to the levels we expected this year.
  • The company will not receive some of the new large orders we are expecting for W1™, Rad-G™ and Rad-97™.
  • The company is disappointed with its results this quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.6%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+17.2%

Q2 2024

Best reaction

-35.8%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+0.1%+0.4%
Q4 2025+0.1%+7.4%+0.6%
Q3 2025-4.8%-3.0%-4.9%
Q1 2025-6.5%+1.3%+6.5%
Q4 2024+12.3%+12.4%-3.5%
Q3 2024+13.7%+10.2%+14.9%
Q2 2024+17.2%+21.1%+9.0%
Q1 2024-13.0%-11.8%-9.6%
Q4 2023-1.5%-3.2%+12.4%
Q3 2023+2.5%+6.6%+30.5%
Q2 2023-4.1%-7.6%-11.8%
Q1 2023-7.0%-8.0%-16.1%
Q4 2022+4.1%+7.9%+5.6%
Q3 2022-12.1%+3.1%+10.1%
Q2 2022+2.1%-0.2%-0.4%
Q1 2022+7.5%+8.5%+19.8%
Q4 2021-35.8%-31.3%-29.9%
Q3 2021+1.4%-0.7%+0.1%
Q2 2021-0.6%+2.3%+3.8%
Q1 2021-6.9%-5.5%-12.4%
Q4 2020+0.5%+0.3%-9.6%
Q3 2020-5.1%-9.0%-0.3%
Q2 2020-7.2%-6.6%-6.7%
Q1 2020-0.6%+1.7%+9.3%
Q4 2019+0.2%-4.5%-14.5%
Q3 2019-1.5%-2.2%+4.7%
Q2 2019-2.8%-7.8%-3.2%
Q1 2019-1.5%+1.1%-2.9%
Q4 2018+1.3%+3.9%+5.5%
Q3 2018-2.2%-3.3%-4.5%
Q2 2018+8.9%+9.1%+18.6%
Q1 2018+4.3%+7.6%+10.2%
Q4 2017+2.2%-1.4%+2.7%
Q3 2017+1.3%-1.0%+2.3%
Q2 2017-10.3%-10.8%-11.5%
Q1 2017-14.2%-17.0%-12.5%
Q4 2016+5.7%+11.1%+21.9%
Q3 2016+5.5%+10.7%+12.3%
Q2 2016+9.3%+6.1%+14.0%
Q1 2016+7.7%
Q4 2015+5.7%
Q3 2015+4.0%
Q2 2015+6.2%
Q1 2015+1.0%
Q4 2014+8.0%
Q3 2014+7.0%
Q2 2014-11.2%
Q1 2014-9.1%
Q4 2013-4.2%
Q3 2013-9.2%
Q2 2013+5.5%
Q1 2013+7.5%
Q4 2012-0.3%
Q3 2012-1.1%
Q2 2012-6.2%
Q1 2012-6.6%
Q4 2009-3.8%
Q4 2011-3.8%
Q3 2011+1.1%
Q2 2011-8.4%
Q1 2011+4.0%
Q3 2010+0.0%
Q2 2010+1.1%
Q4 2010+1.1%
Q1 2010+2.9%

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