Masimo
(Nasdaq: MASI)
shares are down on first-quarter results that beat the consensus forecast.
Shares of MASI fell more than 5% to $152.84 apiece by midday trading today — the day after Masimo’s post-market-close earnings release.
The company shared its plans to sell its Sound United consumer audio segment for approximately $350 million to Harman International.
Masimo had long been attempting to sell off the consumer business acquired through the nearly three-year-old $1 billion purchase of Sound United and its high-end audio and home theater systems. Last year, the company shared that an undisclosed potential joint venture partner had offered a $850–950 million purchase price for a majority stake in its consumer business. It said last August that multiple suitors stepped forward with interest in the business.
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang viewed the deal in a positive light.
“We think the sale of SU is a positive, as investor conversations we’ve had over the past several months have signaled that a sale is preferred,” the analysts wrote.
The earnings results for Masimo
The Irvine, California–based home health monitoring company reported losses of $170.7 million. That equals $3.12 per share on sales of $372 million for the three months ended March 29, 2025.
Masimo recorded a massive bottom-line slide into the red on a sales uptick of 9.5%.
Adjusted to exclude one-time items, earnings per share came in at $1.36. That landed 15¢ ahead of expectations on Wall Street. Sales topped forecasts, too, as experts estimated $367.8 million in revenue.
“Since joining Masimo as CEO three months ago, I have been focused on immersing myself in our business. I have visited customers, employees, manufacturing and R&D sites, evaluated our innovation pipeline, and attended national meetings with our sales team,” said Katie Szyman, Masimo CEO. “My key takeaways are that our technology advantage is real, we have a stellar team that is enthusiastic about the path forward at Masimo, and we have an opportunity to build and improve from a position of meaningful strength. Our first quarter results clearly demonstrate the earnings power of our core business as we delivered double-digit revenue growth and exceptional earnings growth.”
Masimo set its revenue guidance for between $1.5 billion and $1.53 billion, marking an 8%-11% increase. Excluding the potential tariff impact, the company expects adjusted EPS of between $5.30 and $5.60. However, taking tariffs into account, Masimo projects adjusted EPS to range between $4.80 and $5.15.
The company said it has mitigation plans developed and expects to continue reassessing and modifying them as the tariff situation unfolds. Depending on different tariff scenarios, the company has a plan in place to adjust product sourcing and operations to mitigate the impact.
Analysts note that Masimo had a cybersecurity incident
The BTIG analysts also revealed that Masimo detailed a cybersecurity incident temporarily impacting its manufacturing and ability to process, fulfill, and ship orders in a timely manner. It has an investigation underway and does not expect the issue to affect its guidance.
Additionally, they say Masimo plans to provide updates on a product pipeline with upgraded sensors and next-generation monitors. The analysts expect that update at an investor day event planned for the fourth quarter.
“This Q1 update gave us plenty to digest, and we acknowledge that shares are likely to move lower on the reduced margin outlook. However, we do think the wide range of trade policy scenarios and MASI’s ability to proactively and urgently work on some offsets point to this being a likely achievable guide,” the analysts wrote. “We assume some moderation in tariff impact in 2026 and again in 2027.”
The analysts reiterated their “Buy” rating for Masimo.
This story originally ran on May 6, 2025. Updated May 7 with next-day stock price.
