Masimo shares surge on beat-and-raise Q2

Masimo (NSDQ:MASI) today released 2nd quarter earnings that topped the street and send shares skyward in early morning trading.

The Irvine, Calif.-based company reported profits of $30 million, or 57¢ per share, on sales of $164.6 million for the 3 months ended July 2. The company topped expectations from Wall Street, who were looking for earnings per share of 40¢ and revenue of $163.6 million.

Shares have surged in early morning trading after the release, up 9.3% to trade at $58.11 as of 9:38 a.m. EDT.

“We are happy with the stronger than anticipated fiscal second quarter sales growth which was the result of better than expected US and OUS sensor revenues. In addition, higher than projected gross profit margins and a continuation of our control over operating expenses have allowed us to deliver better than expected operating income. As a result, we are once again increasing our full year 2016 financial guidance,” CEO Joe Kiani said in a press release.

Masimo updated its guidance for the year, expecting to see revenue of $689 million, up from previous expectations of $677 million. Product revenues are expected to be $658 million, up from $647 million, with GAAP earnings per diluted share expected to be at $2.01, up from $1.83.

In June, SunTech Medical said it will work with Masimo to integrate its SET pulse oximetry tech into SunTech’s CT40 next-gen spot-check vital signs device.

Masimo’s SET technology is designed to monitor oxygen saturation, pulse rate and perfusion index, and the company touts that it has been shown to reduce false alarms and accurately monitor for true alarms.

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