Masimo Posts Better Than Expected Q1 Earnings Despite 'Unexpected' Supply Chain Issues

Masimo Corp's MASI Q1 revenue increased 1.7% Y/Y (+3.2% on a constant currency basis) to $304.2 million, beating the consensus of $303.83 million.
Excluding handheld and fingertip pulse oximeters, shipments of noninvasive technology boards and instruments were 75,700 in Q1 of 2022.
The adjusted operating margin remained unchanged at 22.9%.
The company reported an adjusted EPS of $0.93, compared to $0.90 a year ago, beating the consensus of $0.87.
"We experienced strong demand for our products during the quarter while facing some unexpected supply chain challenges," said Masimo's Chairman and CEO Joe Kiani.
Masimo held $720.1 million in cash & equivalents at the end of FY21.
Guidance: Masimo expects FY22 adjusted EPS of $4.46 - $4.73, compared to the previous guidance of $4.34, compared to the consensus of $4.16.
The company projects sales of $2 billion - $2.06 billion, compared to the consensus of $1.6 billion.
Piper Sandler analyst Jason Bednar lowered Masimo's price target to $130 from $160 and kept a Neutral rating.
The analyst says it is "simply too early with too many business unknowns for us to recommend investors" buy the shares.
The Sound United updates included margins below prior assumptions and "many unanswered questions," Bednar writes.
Needham also lowered the price target to $163, with a Buy rating unchanged.
Price Action: MASI shares are up 5.75% at $124.75 during market trading on Wednesday.