Masimo
(Nasdaq: MASI)
today announced preliminary financial results for the fourth quarter of 2024 and for the full year.
MASI shares fell 2.5% to $167.73 apiece this morning.
The annual results follow a year of significant upheaval at the top of the company. Founder and CEO Joe Kiani resigned after a September shareholder vote that ousted him from the position of board chair following a lengthy proxy battle between Masimo and Politan Capital Management. The company also enacted layoffs at its headquarters at the end of 2024.
In spite of the changes, Masimo reported growth in 2024, with expected annual revenues of $2.094 billion, marking a 2% year-over-year improvement. That total includes $1.395 billion in healthcare revenue — good for 9% growth. The company anticipates full-year adjusted earnings per share (EPS) to come in at $4.10, landing at the high end of its guidance.
For the fourth quarter, the company projects revenue of $601 million (9% growth), with healthcare sales coming in at $368 million (8% growth). That revenue comes in ahead of expectations on Wall Street, where experts forecast $591.7 million in revenue.
Looking ahead to 2025, Masimo projects healthcare revenues to land between $1.5 billion and $1.53 billion. That would deliver 8%-11% growth. The company expects adjusted EPS to land between $4.90 and $5.10.
BTIG analysts Marie Thibault and Sam Eiber maintain a “Buy” rating for Masimo on the back of the results. They say the company’s lack of guidance for its consumer health business falls in line with prior commentary related to treating the consumer health business as a discontinued operation beginning in the first quarter of 2025. Masimo previously outlined its interest in selling that business.
“We look forward to updates on MASI’s CEO search, product portfolio review, and cost-related initiatives to rightsize the company,” the analysts wrote.
