Masimo (NSDQ:MASI) shares are down today after a slide on third-quarter profits, despite an increase in sales revenue.
Irvine, Calif.-based Masimo posted profits of $49.1 million, or 86¢ per share, on sales of $228.9 million for the three months ended Sept. 30, for a bottom-line slide of -14.1% on revenue growth of 13.6%.
Adjusted to exclude one-time items, earnings per share were 76¢, 12¢ behind Wall Street, where analysts were looking for sales of $220.9 million.
“We are happy to report third quarter results that once again exceeded expectations with product revenue growing 13.6% on a constant currency basis,” chairman & CEO Joe Kiani said in prepared remarks. “Through the first nine months of this year we have kept our commitment to introduce one new product per month in our 30th anniversary year. We have introduced nine important products so far, including Radius PPG, Halo ION, and neonatal O3 Cerebral oximetry monitoring. With these new products added to our existing portfolio, we continue to deliver solutions that improve patient outcomes and reduce the cost of care. We again are delighted to be in a position to raise our revenue and earnings guidance for the remainder of 2019.”
Masimo said it now expects to put up adjusted EPS of $3.18 this year, compared with prior guidance for $3.15. Revenues are now pegged at around $932 million, climbing up from the company’s previous outlook of $925 million.
Shares of MASI were down -3.3% at $142.63 per share in midday trading today.
The company also announced today that its Radius capnography portable, real-time capnograph won CE Mark approval, according to a news release.
Radius capnography is designed to connect with the Root patient monitoring and connectivity platform to offer mainstream capnography for patients of all ages. The device doesn’t require routine calibration and has minimal warm-up time, with respiration rates and continues EtCO2 waveforms displayed within 15 seconds.
“We’re happy to introduce the second tetherless, cableless sensor for Root, Radius Capnography,” Kiani said. “With this CE marking, the advanced connectivity of Radius Capnography is now available in both the U.S. and CE-marked countries, bringing the power of Masimo capnography to even more hospitals around the world.”
