The earnings call reflects a strong performance in the healthcare segment with significant revenue growth and improved margins. However, challenges persist in the non-healthcare consumer market, which saw a decline in revenue. The company is optimistic about future margin improvements and strategic initiatives, particularly in healthcare.

Company Guidance

During Masimo's Third Quarter 2024 Earnings Call, the company provided a detailed financial outlook and strategic updates. For Q3, health care revenues reached $343 million, near the top end of the guidance range, reflecting a 12% year-over-year growth, while non-health care revenues were $161 million, indicating a 6% decline. The consolidated non-GAAP gross margin was reported at 54%, with healthcare at 62.9% and non-healthcare at 34.6%. The company achieved a non-GAAP operating profit of $81 million, marking a 23% increase from the previous year, and a non-GAAP EPS of $0.98, up 31%. For Q4 2024, Masimo projects consolidated revenues between $581 million and $611 million, and non-GAAP EPS between $1.35 and $1.50. The guidance for full-year 2024 includes consolidated revenues of $2.75 billion to $2.105 billion, and a non-GAAP EPS range of $3.95 to $4.10. The company also outlined ongoing margin improvement initiatives and strategic reviews, including a potential separation of the consumer business, expected to enhance the company's revenue growth and earnings power in 2025 and beyond.

Healthcare Revenue Growth

Healthcare revenues for Q3 2024 were $343 million, representing a 12% growth compared to the previous year.

Improved Gross Margins

Consolidated non-GAAP gross margin was 54%, with healthcare gross margins improving by 260 basis points year-over-year to 62.9%.

Operating Profit and EPS Growth

Non-GAAP operating profit grew by 23% versus last year, with a non-GAAP EPS growth of 31% to reach $0.98 for the third quarter.

Future Margin Expansion Plans

Projected at least a 200 basis point improvement in operating margin for 2025 due to strategic initiatives.

Strong Contracting Performance

Incremental value of new contracts in 2024 totals $318 million through the third quarter, indicating strong market share gains.

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Masimo (MASI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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MASI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 04, 2025	2024 (Q4)	1.42 / -	1.25	―	―	―
Nov 05, 2024	2024 (Q3)	0.84 / 0.98	0.63	55.56% (+0.35)
Aug 06, 2024	2024 (Q2)	0.77 / 0.86	0.62	38.71% (+0.24)
May 07, 2024	2024 (Q1)	0.70 / 0.77	0.87	-11.49% (-0.10)
Feb 27, 2024	2023 (Q4)	0.90 / 1.25	1.32	-5.30% (-0.07)
Nov 07, 2023	2023 (Q3)	0.61 / 0.63	1	-37.00% (-0.37)
Aug 08, 2023	2023 (Q2)	0.64 / 0.62	1.35	-54.07% (-0.73)
May 09, 2023	2023 (Q1)	0.83 / 0.87	0.93	-6.45% (-0.06)
Feb 28, 2023	2022 (Q4)	1.18 / 1.32	1.21	9.09% (+0.11)
Nov 08, 2022	2022 (Q3)	0.92 / 1.00	0.94	6.38% (+0.06)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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MASI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$151.56	$167.63	+10.60%
Aug 06, 2024	$110.32	$122.77	+11.29%
May 07, 2024	$136.00	$120.02	-11.75%
Feb 27, 2024	$130.10	$128.70	-1.08%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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