The company took a 19% hit in profits on a 3% increase in sales and narrowed its full-year outlook, cutting off the top end of its previous expectations. MASI shares dropped 12.8% today, trading at $21.12 as of about 12:55 p.m. EST.
Company leadership maintained that the rough quarter was not an omen of dark times, noting that at least part of its Rainbow pulse co-oximetry device revenues were shifted from Q2 to Q3.
"Although our results for the 2nd quarter were below our original Q2 expectations, it will not have a substantial impact on our full year financial guidance," chairman & CEO Joe Kiani said in prepared remarks.
Masimo narrowed its full-year outlook, now projecting per-share earnings in the range of $1.24-$1.30. The company had previously guided $1.24-$1.33.
For the 2nd quarter Masimo reported profits of $13.8 million, or 24¢ per diluted share, on sales of $133.5 million. That compared with profits of $17 million, or 30¢ per share, on sales of $129.6 million during the same period last year. Excluding special items, Masimo’s per-share earnings came to 27¢, 2¢ lower than analysts’ consensus estimate and 3¢ lower year-over-year.
The company also announced this week that it lost a board member as Edward Cahill announced his decision to retire ahead of the 2015 expiration of his role as Class II director. Cahill was also a member of the audit committee and nominating, compliance & corporate governance committee. He stepped down "so that he could dedicate more time to other professional responsibilities, including his full-time job," according to the SEC filing.