Masimo beats Street in Q1 but stock dips amid ‘unexpected’ supply chain issues

Masimo (Nasdaq:MASI) shares were down after hours on first-quarter results that topped the consensus forecast.

MASI shares were down 6.8% at $110 per share after hours today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day down 0.2%.

The Irvine, California-based company posted profits of $46.6 million, or 81¢ per share, on sales of $304.2 million for the three months ended April 2, 2022, for a 12.7% bottom-line slide despite sales growth of 1.7%.

Adjusted to exclude one-time items, earnings per share were 93¢, 6¢ ahead of Wall Street, where analysts were looking for sales of $303.8 million.

“We experienced strong demand for our products during the quarter while facing some unexpected supply chain challenges,” Masimo Chair and CEO Joe Kiani said in a news release. “Our actions to address those issues are ongoing and we still expect to achieve the growth …

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Masimo completes acquisition of Sound United

Masimo (Nasdaq:MASI) announced today that it completed its previously announced acquisition of Sound United.

Irvine, California-based Masimo announced in February that it would spend $1.025 billion to acquire Viper Holdings, the parent company of Sound United. Wall Street’s response saw Masimo’s stock drop by 35%, with analysts unsure about the consumer tech acquisition, saying it left them with “more questions than answers.”

However, the market quickly reconsidered its position on the acquisition, as Masimo’s stock climbed over the following days, with Needham analyst Mike Matson saying that that the sell-off was “overdone” and the deal is expected to be highly accretive to Masimo’s earnings per share.

In response to today’s announcement, BTIG analyst Marie Thibault wrote that investors’ focus revolves around “gaining clarity around the combination,” including the key areas of produ…

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Investors may have overreacted over Masimo

[Image from Pixabay]The Street appears to be reassessing its reaction to Masimo’s plans to spend $1.025 billion to acquire Viper Holdings, the parent company of Sound United.

The news of the acquisition plans on the evening Feb. 15 caused the patient monitoring tech company’s stock to lose a third of its value the next day. While MASI shares are still down more than 29% over the past five days on the Nasdaq as of this morning, the company’s stock has recovered a bit since the initial fall.

Analysts appear to be gaining more perspective over Masimo’s plans to acquire the company behind high-end sound system brands including Bowers & Wilkins, Denon, Polk Audio and Marantz.

“While we understand investors’ consternation over the Sound United deal, we believe that the sell-off was overdone and note that we expect the deal to be highly accretive to EPS, and we believe that investors get a free call option on MASI’s co…

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Masimo stock falls as The Street ponders $1B Sound United acquisition

Masimo (Nasdaq: MASI) stock lost nearly a third of its value the morning after the company said it would spend $1.025 billion to acquire Viper Holdings, the parent company of Sound United.

Sound United is behind consumer tech brands including Bowers & Wilkins, Denon, Polk Audio and Marantz, making high-end sound and home theater systems. Think sophisticated speaker systems.

“We see significant opportunities to cross-leverage technologies, bringing Masimo’s clinically superior solutions into the home and on-the-go as well as bringing Sound United’s premium technologies into the hospital to advance our hospital automation connectivity and cloud-based technologies,” Masimo CEO Joe Kiani said in a news release.

“The technology and expertise within Sound United will serve us well as we aim to augment our Masimo SafetyNet strategy.”

The BTIG analysts note on the deal had the headline “MASI’s consumer tech acquisit…

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