Masimo (MASI) Presents Encouraging SpHb Study Data

Masimo Corporation (NASDAQ:MASI) recently presented results of a new study at the World Congress of Anesthesiologists in Hong Kong. The study revealed that continuous and noninvasive hemoglobin monitoring using the company’s proprietary SpHb may reduce excessive intraoperative red blood cell (RBC) transfusion.

SpHb is a non-invasive and continuous hemoglobin patient monitoring technology that has been clinically proven to accurately assess hemoglobin levels. For the aforementioned study, data was taken from 371 patients who underwent intraoperative RBC transfusion between 2012 and 2014 at Fukushima Medical University in Japan.

The manufacturer of non-invasive monitoring technologies is currently riding on its robust business. Last month, the company reported impressive second-quarter 2016 results and projected higher total revenue and earnings for full-year 2016. These developments continue to bode well for the company.

For 2016, Masimo projects total revenue of $689 million, up from the previous projection of $677 million. Product revenues are expected at around $658 million, up from the previous guidance of $647 million. Meanwhile, Royalty revenue is expected at $31 million, up from the previously guided $30 million.

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Masimo forecasts gross margin of approximately 65%, up from 64.7% guided previously. Management expects operating expense of approximately $314 million, which however is also slightly higher than the previous guidance of $312 million. Then again, earnings per share are projected at $2.01, up from the earlier projected figure of $1.83.

Irvine, CA-based Masimo develops, manufactures and markets a family of non-invasive monitoring systems. The company’s flagship product – Signal Extraction (SET) Pulse Oximetry – is used to monitor blood oxygen saturation levels and protect against hypoxemia and hyperoxemia. The device also measures pulse rate.

Zacks Rank & Other Key Picks

Currently, Masimo sports a Zacks Rank #1 (Strong Buy). Other favorably placed stocks in the medical space include GW Pharmaceuticals plc (NASDAQ:GWPH) , NuVasive, Inc. (NASDAQ:NUVA) and Quidel Corp. (NASDAQ:QDEL) . Each of these stocks also sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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