Masimo (MASI) Plans Consumer Business Spin-Off to Drive Growth

Zacks03-27

Masimo MASI recently announced that it is planning to separate its consumer business and will focus on its professional healthcare and telehealth products. The company’s management has already been ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2422991033?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/cmL6E3aiKePvMAVLhbtZ3A--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/072f196a59327977f5ceaaafb40567a1","is_english":true,"pubTime":"2024-03-27 19:12","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2422991033","market":"us","top_or_hot":-1,"title":"Masimo (MASI) Plans Consumer Business Spin-Off to Drive Growth","media":"Zacks","content":"<div>\n<p>Masimo MASI recently announced that it is planning to separate its consumer business and will focus on its professional healthcare and telehealth products. The company’s management has already been ...</p>\n\n<a href=\"https://finance.yahoo.com/news/masimo-masi-plans-consumer-business-111200694.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Masimo (MASI) Plans Consumer Business Spin-Off to Drive Growth</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMasimo (MASI) Plans Consumer Business Spin-Off to Drive Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-27 19:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/masimo-masi-plans-consumer-business-111200694.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Masimo MASI recently announced that it is planning to separate its consumer business and will focus on its professional healthcare and telehealth products. The company’s management has already been ...</p>\n\n<a href=\"https://finance.yahoo.com/news/masimo-masi-plans-consumer-business-111200694.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SYK","symbol_name":"史赛克","start_time":0,"source_url":"https://finance.yahoo.com/news/masimo-masi-plans-consumer-business-111200694.html","article_id":"2422991033","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/cmL6E3aiKePvMAVLhbtZ3A--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/072f196a59327977f5ceaaafb40567a1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422991033","pubTimestamp":1711537920,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Masimo MASI recently announced that it is planning to separate its consumer business and will focus on its professional healthcare and telehealth products. The company’s management has already been authorized by its board of directors to evaluate the proposed structure of the separation.The company’s planned separation will include its non-healthcare portfolio consisting of premium home sound integration technologies and accessories, high-performance in-vehicle audio systems, professional sound studios and audiophiles. The separation will also include the Stork baby monitor and the Freedom smartwatch and band from its healthcare portfolio. MASI’s current chairman, Joe Kiani, will chair both entities following the separation.Masimo is planning to close the separation as soon as possible, subject to the completion of due diligence and regulatory obligations and approvals. However, the company has maintained its financial guidance for the first quarter and fiscal 2024, which implies that ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SYK":"史赛克","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","LU0690374615.EUR":"FUNDSMITH EQUITY \"R\" (EUR) ACC","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU2468319806.SGD":"MANULIFE GF HEALTHCARE \"AA\" (SGDHDG) ACC","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","CAH":"卡地纳健康","LU0114720955.EUR":"SUSTAINABLE GLOBAL HEALTH CARE \"A\" INC","BK4504":"桥水持仓","LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","LU0528227936.USD":"富达环球人口趋势基金A-ACC","LU0792757196.USD":"TEMPLETON SHARIAH GLOBAL EQUITY FUND \"A\" (USD) ACC","LU1791710582.SGD":"Fidelity Global Demographics A-ACC-SGD (SGD/USD hedged)","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU1791710400.SGD":"Fidelity Global Demographics A-ACC-SGD","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","BK4175":"保健护理产品经销商","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4585":"ETF&股票定投概念","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","DVA":"达维塔保健","BK4196":"保健护理服务","BK4566":"资本集团","LU0882574055.USD":"富达全球健康医疗A ACC","BK4082":"医疗保健设备","MASI":"麦斯莫医疗","LU2404859741.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) INC","BK4559":"巴菲特持仓","LU2404859667.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) ACC","BK4588":"碎股","LU0690374961.EUR":"FUNDSMITH EQUITY \"R\" (EUR) INC"},"translate_title":"马西莫（马西）计划剥离消费者业务以推动增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SYK":1,"MASI":1,"DVA":1,"CAH":0.9},"content_text":"Masimo MASI recently announced that it is planning to separate its consumer business and will focus on its professional healthcare and telehealth products. The company’s management has already been authorized by its board of directors to evaluate the proposed structure of the separation.\nThe company’s planned separation will include its non-healthcare portfolio consisting of premium home sound integration technologies and accessories, high-performance in-vehicle audio systems, professional sound studios and audiophiles. The separation will also include the Stork baby monitor and the Freedom smartwatch and band from its healthcare portfolio. MASI’s current chairman, Joe Kiani, will chair both entities following the separation.\nMasimo is planning to close the separation as soon as possible, subject to the completion of due diligence and regulatory obligations and approvals. However, the company has maintained its financial guidance for the first quarter and fiscal 2024, which implies that the spin-off may happen in the latter part of 2024 or beyond.\nRationale Behind Separation\nMasimo expects the spin-off of its consumer business to help improve the profitability of the healthcare business, which includes noninvasive monitoring products for patients in hospitals. The proposed separation will help the company to focus on its growing business with better margins that will likely accelerate shareholders’ wealth growth.\n\nMasimo Corporation Price\n\nMasimo Corporation price | Masimo Corporation Quote\n\nIn 2023, the company’s non-healthcare business faced a challenging macro environment, including an overall dip in demand for consumer audio products and lower consumer discretionary purchases, adversely impacting the market for high-end audio systems. Although reported non-healthcare revenue grew 11% for full-year 2023, it was primarily driven by favorable foreign currency movement. Sales were down 18% on a constant currency (cc) basis.\nMeanwhile, MASI’s guidance for 2024 also implies flat to declining sales for non-healthcare business in 2024. The healthcare segment sales were down 4% at cc in 2023, while the company estimates sales to grow 5.5-8.6% in 2024.\nThe separation may also improve the gross margin for MASI going forward as its healthcare business has a significantly higher margin compared to non-healthcare. The company has projected an adjusted gross margin of 62% for the healthcare segment and 33% to 35% for non-healthcare segment in 2024.\nPer Masimo’s guidance, non-healthcare business is likely to generate $700-$780 million in sales in 2024. The Stork baby monitor, and the Freedom smart watch and band will generate additional sales to the new entity. Currently, MASI is currently trading at a price to future 12-month sales multiple of 3.49X.\nA weak outlook for the non-healthcare business may lead to a lower valuation multiple. The company may use the cash from the divestment to reduce its debt, which will eventually lower its interest outgo. A lower interest expense may help improve the company its net margin.\nMasimo’s plan to separate its consumer business currently looks favorable for the company’s prospects. Its shares have gained 4.2% since the announcement of the proposed separation on Friday last week. However, the deal value will be a key factor for analyzing the gain from the proposed spin-off.\nShares of the company have risen 20% so far this year compared with the industry’s 6.7% increase. The S&P 500 Index has gained 9.2% during the same time frame.\nImage Source: Zacks Investment Research\nZacks Rank & Other Stocks to Consider\nMasimo currently carries a Zacks Rank #2 (Buy).\nSome other top-ranked stocks in the broader medical space are Cardinal Health CAH, Stryker SYK and DaVita DVA. While Cardinal Health and Stryker carry a Zacks Rank #2, DaVita sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.\nCardinal Health’s stock has gained 55.8% in the past year. Earnings estimates for Cardinal Health have risen from $7.28 to $7.29 in fiscal 2024 and from $8.02 to $8.04 in fiscal 2025 in the past 30 days.\nCAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.67%.\nEstimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 26.2% upward in the past year compared with the industry’s rise of 5.2%.\nSYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.09%. In the last reported quarter, it delivered an earnings surprise of 5.81%.\nEstimates for DaVita’s 2024 earnings per share have moved from $8.97 to $9.23 in the past 30 days. Shares of the company have gained 74.7% in the past year compared with the industry’s 22% rise.\nDVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.57%. In the last reported quarter, it delivered an earnings surprise of 22.22%.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nStryker Corporation (SYK) : Free Stock Analysis Report\nDaVita Inc. (DVA) : Free Stock Analysis Report\nCardinal Health, Inc. (CAH) : Free Stock Analysis Report\nMasimo Corporation (MASI) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2422991033"}