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Dec 28, 2019

Masimo Q4 2019 Earnings Report

Masimo's Q4 2019 earnings were reported, showing revenue growth and solid financial performance.

Key Takeaways

Masimo reported a total revenue of $247.5 million for Q4 2019, with product revenue increasing by 11.8% to $247.4 million. The company's GAAP net income per diluted share was $0.92, and non-GAAP net income per diluted share was $0.91.

Total revenue reached $247.5 million.

Product revenue increased by 11.8%.

GAAP net income per diluted share was $0.92.

Non-GAAP net income per diluted share was $0.91.

Total Revenue
$248M
Previous year: $223M
+10.9%
EPS
$0.91
Previous year: $0.83
+9.6%
Shipments
61.4K
GAAP Operating Margin
24.9%
Non-GAAP Operating Margin
25.7%
Gross Profit
$167M
Previous year: $148M
+12.5%
Cash and Equivalents
$568M
Previous year: $552M
+2.8%
Free Cash Flow
$57.9M
Previous year: $58.4M
-0.8%
Total Assets
$1.4B
Previous year: $1.15B
+20.9%

Masimo

Masimo

Masimo Revenue by Segment

Forward Guidance

The Company provided the following estimates for its full-year 2020 guidance: Total revenue, including royalty and other revenue $1,035, Product revenue $1,035, Earnings per diluted share $3.64, Non-GAAP Earnings per diluted share $3.56

Positive Outlook

  • Product revenue of $1.035 billion, which reflects growth of 10.5% and constant currency growth of 11.0%
  • GAAP earnings per diluted share of $3.64
  • Non-GAAP earnings per diluted share of $3.56
  • Gross margin 67.7%
  • Operating margin 24.0%

Challenges Ahead

  • Estimated tax rate 19.1%
  • Included in our full-year 2020 revenue guidance is approximately $4 million of year-over-year currency headwinds.
  • Risks related to the integration of the acquisition of the Connected Care assets from NantHealth, Inc.
  • Our dependence on Masimo SET® and Masimo rainbow SET™ products and technologies for substantially all of our revenue
  • Any failure in protecting our intellectual property exposure to competitors’ assertions of intellectual property claims