Earnings To Watch: Masimo (MASI) Will Announce Q4 Results Tomorrow

Masimo Set to Announce Earnings: Key Insights for Investors

Masimo (NASDAQ:MASI), a leader in medical technology, is scheduled to release its latest earnings report this Thursday after market close. Here’s a summary of what shareholders should keep in mind.

In the previous quarter, Masimo exceeded Wall Street’s revenue projections, posting $371.2 million in sales—a year-over-year increase of 8.1%. The company not only surpassed analysts’ full-year EPS forecasts but also delivered operating income above expectations, marking a notably strong performance.

As the next earnings report approaches, investors may be wondering whether Masimo is a buy or sell.

Revenue Outlook and Market Expectations

For this quarter, analysts anticipate Masimo’s revenue will climb 10.8% compared to the same period last year, a significant turnaround from the 32.9% decline reported a year ago.

Most analysts have maintained their forecasts over the past month, indicating confidence in Masimo’s current trajectory as earnings approach. However, it’s worth noting that the company has missed revenue estimates several times in the past two years.

Industry Peers: Recent Results

Several competitors in the patient monitoring sector have already released their fourth-quarter results, offering some context for Masimo’s upcoming report. iRhythm saw its revenue grow 27.1% year over year, beating expectations by 3.4%, while Insulet reported a 31.2% increase, surpassing estimates by 2%. Despite these strong numbers, iRhythm’s stock fell 5% after its announcement, whereas Insulet’s shares rose by 1.1%.

Market Trends and Analyst Targets

Ongoing debates about tariffs and changes to corporate taxes have created uncertainty regarding the economic outlook for 2025. While some patient monitoring stocks have held up well in this volatile environment, the sector as a whole has lagged, with share prices dropping an average of 3.7% over the past month. In contrast, Masimo’s stock has surged 25.1% during the same period, and analysts currently set an average price target of $178.60, compared to its latest price of $175.35.

Special Opportunity: Share Buybacks and Free Cash Flow

When a company has excess cash, repurchasing its own shares can be a smart move—provided the valuation is attractive. We’ve identified a bargain stock that’s generating significant free cash flow and actively buying back shares.