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Masimo Corporation MAMO reported a GAAP earnings per share (EPS) of 18 cents, which was slightly lower than the 20 cents reported in the third quarter of 2023. However, the non-GAAP EPS for the third quarter of 2024 was 98 cents, showing an improvement from the 75 cents achieved in the same period of the prior year.
Total revenues for the quarter were $504.6 million, reflecting a year-over-year increase from $478.9 million in the third quarter of 2023. This was divided into healthcare revenues of $343.3 million and non-healthcare revenues of $161.3 million. These figures highlight Masimo's continued growth, particularly within its healthcare segment, which has been the primary driver of revenue expansion.
Masimo demonstrated stable performance in the third quarter of 2024, with notable improvements in healthcare revenues despite challenges within non-healthcare divisions. The quarterly performance underscores strong momentum within its core healthcare business, especially high-demand monitoring technologies while signaling strategic adjustments to address underperforming areas. This reorientation, coupled with an upward revision in full-year EPS guidance, reflects management’s commitment to bolstering profitability and driving sustainable growth for the future.
Masimo Corporation Price, Consensus and EPS Surprise
Masimo Corporation price-consensus-eps-surprise-chart | Masimo Corporation Quote
Key Business Metrics
Healthcare Segment Revenue
Healthcare segment revenues were $343.3 million, growing 11.5% year over year on a GAAP basis and 11.7% on a constant currency basis, demonstrating resilience and consistent demand. The growth in this segment aligns with Masimo's focus on providing innovative healthcare solutions, with a particular emphasis on patient monitoring systems that cater to hospital and critical care needs.
Operating Income
Masimo reported a GAAP operating income of $30.1 million, up from $25.2 million in the third quarter of 2023. The non-GAAP operating income, excluding costs associated with litigation, acquisitions, and other adjustments, was $80.8 million. This growth reflects improved operational efficiency and effective cost management in core areas, although litigation-related expenses impacted GAAP profitability.
Non-Healthcare Segment Revenues
Revenues from the non-healthcare segment totaled $161.3 million, highlighting challenges within this part of the business. The consumer division, in particular, is undergoing a strategic review as management reallocates resources to higher-growth, healthcare-related initiatives. This segment’s performance has lagged behind the healthcare division, prompting plans for potential restructuring.