Masimo (Nasdaq: MASI) reported Street-beating fourth-quarter results and 2023 guidance that surpassed analysts’ expectations.
CEO Joe Kiani, in a news release yesterday evening, described 2022 as a momentous year for the health monitoring tech company. He said Masimo has already completed its integration with Sound United, the maker of high-end sound systems that it acquired for $1.025 billion in April 2022.
“The acquisition has provided us with immediate scale across consumer engineering, sales, marketing and distribution that would have otherwise taken many years of dilutive investment to build. Instead, we’ve already completed the integration and are working to realize the tremendous potential of the hearables, wearables and telemonitoring markets unlocked by our unique combination of healthcare and consumer technology capabilities,” Kiani said.
Investors reacted by sending MASI shares up more than 4% to $174.95 apiece by afternoon trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down slightly.
Other Masimo accomplishments in 2022 included the introduction of new wearable technologies, such as the W1 biosensing watch. In addition, Masimo has made some headway in its patent dispute with Apple. Plus, it has expanded its patient monitoring partnership with Philips.
The Irvine, California–based company earned $41.1 million, or 76¢ per share, off of $617 million in revenue for the quarter that ended Dec. 31, 2022.
Adjusted to exclude one-time items, Masimo had a Q4 EPS of $1.32. The result came in 15¢ ahead of the predictions of Wall Street analysts, who expected earnings per share of $1.17 and $602.49 in revenue.
For full-year 2023, Masimo expects revenue of $2.415–2.460 billion and adjusted EPS of $4.70–4.80. The projection is ahead of the Wall Street consensus.
BTIG analysts reiterated their Buy rating for MASI shares and upped their price target. Said analysts Marie Thibault and Sam Eiber: “2022 was full of twists and turns for Masimo, but the company wrapped up the year with a beat.”
Mike Matson at Needham & Co. did the same, describing the Masimo results as a nice finish to 2022.
This story originally ran on Feb. 28, 2023. Updated March 1 with the next-day stock price and analyst comment.