Latest news with #SoundUnited
Yahoo
20-05-2025
- Business
- Yahoo
MASI Q1 Earnings Call: Revenue Tops Expectations, Focus Shifts to Healthcare Core Amid Tariff Headwinds
Medical tech company Masimo (NASDAQ:MASI) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 9.5% year on year to $372 million. The company expects the full year's revenue to be around $1.52 billion, close to analysts' estimates. Its non-GAAP profit of $1.36 per share was 12.6% above analysts' consensus estimates. Is now the time to buy MASI? Find out in our full research report (it's free). Revenue: $372 million vs analyst estimates of $367.9 million (9.5% year-on-year growth, 1.1% beat) Adjusted EPS: $1.36 vs analyst estimates of $1.21 (12.6% beat) Adjusted EBITDA: $123.8 million vs analyst estimates of $108.5 million (33.3% margin, 14.1% beat) Management lowered its full-year Adjusted EPS guidance to $4.98 at the midpoint, a 5.2% decrease Operating Margin: 21%, up from 15.6% in the same quarter last year Free Cash Flow Margin: 7.7%, down from 11.1% in the same quarter last year Constant Currency Revenue rose 10.5% year on year (-12.5% in the same quarter last year) Market Capitalization: $8.44 billion Masimo's first quarter results were driven by double-digit growth in core healthcare sales, margin expansion, and operational efficiencies. CEO Katie Szyman attributed performance to strong demand for patient monitoring products, a successful large contract renewal, and improved cost controls. She also cited early progress in her commercial strategy and highlighted the company's commitment to innovation as foundational for future growth. Looking ahead, management's guidance reflects the impact of new tariffs and continued investments in commercial and R&D initiatives. CFO Micah Young described the tariff environment as fluid, noting that mitigation plans are in progress but difficult to quantify for the full year. The company's outlook is further shaped by the sale of its consumer audio business, with proceeds expected to support share repurchases. Szyman acknowledged ongoing uncertainty from tariffs and emphasized Masimo's focus on operational execution and margin discipline. Masimo's management identified several drivers behind Q1 performance and upcoming changes to its business focus. The sale of the consumer audio division and a renewed emphasis on healthcare technology are central to its evolving strategy. Divestiture of Sound United: Masimo entered an agreement to sell its consumer audio business, Sound United, allowing the company to concentrate resources on its healthcare segment. Management stated that the sale will help sharpen the company's focus on patient monitoring and hospital solutions. Operational margin gains: Operating margin improvement was attributed to last year's cost optimization measures and a shift towards higher-value healthcare products. CFO Micah Young noted that these actions resulted in a 750 basis point annual increase. Sales force restructuring: CEO Katie Szyman outlined a transition from product-based to regionally-focused sales teams. This shift is intended to leverage the full product portfolio and increase market penetration for advanced monitoring categories such as capnography and hemodynamics. Product innovation pipeline: Szyman highlighted next-generation patient monitors with AI-based algorithms as a key area of investment. These upcoming launches aim to expand Masimo's presence in acute and post-acute care settings. Tariff mitigation planning: Management discussed detailed scenario planning to address new U.S. and China tariffs. Young explained that supply chain adjustments and sourcing changes are under evaluation, with mitigation steps expected to be phased in as regulatory clarity improves. Masimo's forward-looking performance will depend on its ability to offset tariff pressures, execute its healthcare strategy, and maintain commercial momentum while investing in innovation. Tariff cost management: Management is actively scenario-planning to mitigate the impact of recently imposed tariffs, including supply chain shifts and potential pricing adjustments, with the goal of reducing margin pressure through 2025. Healthcare business refocus: The sale of the consumer audio division will free up resources to accelerate investments in patient monitoring technologies, AI-driven products, and sales force expansion—all positioned as growth catalysts for the core business. Operational investments and risks: Increased spending on commercial excellence and R&D, coupled with macroeconomic uncertainties such as labor costs and regulatory shifts, may create short-term margin volatility even as management expects long-term leverage. Frederick Wise (Stifel): Asked about the revenue and margin impact of a large contract and how underlying growth trends will normalize next quarter. Management explained the timing effect and stated that underlying demand remains strong, with seasonality expected to drive Q2 results. Vik Chopra (Wells Fargo): Queried whether tariffs will affect long-term margin goals and sought clarification on use of proceeds from the Sound United sale. CFO Micah Young confirmed ongoing margin expansion is expected and that share repurchases are prioritized over debt repayment. Jason Bednar (Piper Sandler): Requested insight into OEM partner signals on hospital spending and the rationale for confidence in guidance despite a recent cybersecurity incident. Management cited recurring revenue strength and robust protocols for addressing the incident. Mike Matson (Needham): Probed the strategy for hemodynamic monitoring and whether share repurchases will take precedence over debt repayment. CEO Szyman described the plan to integrate hemodynamics into next-gen monitors and focus on mid-to-low acuity hospital segments. Matt Taylor (Jefferies): Sought details on the margin expansion potential and the cadence of tariff impacts throughout the year. Management highlighted ongoing investments and explained that tariff effects will be weighted toward the fourth quarter. In the coming quarters, the StockStory team will monitor (1) the progress of Masimo's sales force restructuring and its effect on new product adoption, (2) execution of supply chain and sourcing adjustments in response to tariffs, and (3) the pace and success of innovation in AI-based patient monitoring. Updates on the Sound United sale closing and deployment of proceeds will also be key markers for fundamental performance. Masimo currently trades at a forward P/E ratio of 28.7×. Should you load up, cash out, or stay put? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
12-05-2025
- Business
- Los Angeles Times
Samsung's Harman to Acquire Masimo's Sound United Consumer Audio Business for $350 Million
Irvine-based Masimo Corp. agreed to sell its Sound United consumer audio business to HARMAN International Industries Inc., a subsidiary of Samsung Electronics Co., for $350 million. The deal is expected to close by the end of 2025. 'Finding the right home for this business has been a stated priority of the new board from day one, and this transaction represents an important milestone as we continue to position the company to achieve our goals of accelerating revenue growth while delivering disciplined margins. Masimo has tremendous opportunities ahead, and we are confident we have the right healthcare-focused strategy, experienced leadership team and culture of innovation in place to build on our significant positive momentum,' said Quentin Koffey, vice chairman of Masimo's board of directors, in a statement. Sullivan & Cromwell served as legal adviser to Masimo. Information for this article was sourced from Harman.
Yahoo
08-05-2025
- Business
- Yahoo
Masimo finds buyer for consumer audio business
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. Masimo said Tuesday it agreed to sell its Sound United consumer audio portfolio for $350 million to Samsung Electronics' Harman International unit, freeing the company to focus on its professional healthcare business. The sale is expected to close by the end of 2025, subject to regulatory approvals. The $1 billion acquisition of Sound United in 2022 was at the center of a proxy fight that ultimately led to the resignation of Masimo founder and longtime CEO Joe Kiani. Masimo lowered its 2025 earnings per share forecast due to the impact of tariffs but maintained its revenue outlook in its first-quarter earnings release. The patient monitoring company also disclosed a cybersecurity incident that is limiting its ability to fulfill orders. The sale price for Sound United, whose brands include Bowers & Wilkins, Denon and Marantz, is at a steep discount to what Masimo paid for the business three years ago. When Masimo bought Sound United, Kiani championed the acquisition as an opportunity to leverage the company's consumer expertise, but investors questioned the strategy. Activist shareholder Politan Capital Management, arguing the deal and subsequent selloff in Masimo's shares were the result of poor management, won a majority of seats on the company's board after a two-year battle. Kiani left the company soon after. In finding a buyer for Sound United, the new Masimo board has achieved one of its main objectives, said Vice Chairman Quentin Koffey. BTIG analyst Marie Thibault, in a note to investors Tuesday, called the Sound United sale a positive for the company and noted that Masimo would have increased its profit forecast if not for the impact of tariffs. Thibault believes the company's counteractions will likely be enough to achieve its financial guidance. Masimo expects tariff impacts would reduce its 2025 non-GAAP earnings per share by 45 cents to 50 cents, before any tariff mitigation, to a range of $4.80 to $5.15. The company said it has developed mitigation plans that it will reassess and modify as needed, including adjusting product sourcing and operations. The cyberattack on some of its manufacturing facilities, which Masimo discovered on April 27 and disclosed in a securities filing, disrupted the company's website and several computer systems but is not expected to affect its financial guidance. Recommended Reading Masimo, amid leadership transition, targets cost reductions
GSM Arena
07-05-2025
- Business
- GSM Arena
Samsung to acquire the owner of Bowers & Wilkins, Denon, Boston Acoustics and others
Samsung acquired Harman back in 2017, which gave it control over popular audio gear brands such as Harman Kardon, AKG, Bang & Olufsen, JBL and many others. These brands make headphones, home audio equipment and car audio, which Samsung has a vested interest in. Now Samsung is expanding its domain as its Harman subsidiary is set to acquire Masimo's Sound United. In recent years, Sound United had acquired the likes of Denon, Bowers & Wilkins, Boston Acoustics and others. Boston Acoustics is behind the OEM sound equipment for a lot of popular car models. Older Galaxy Buds had 'Sound by AKG' labels on them, but that was removed for the Galaxy Buds3 generation. Will one of the new brands take over? We'll have to wait to find out. This deal is subject to regulatory approval as always, but it is expected to close by the end of the year. Samsung has signed a $350 million contract for the acquisition. This is expected to grow Harman's lifestyle business division and cement it in the top spot globally for consumer audio. The global consumer audio market is expected to grow from $60.8 billion this year to $70 billion in 2029, writes Samsung in its press release. P.S. if Masimo sounds familiar but you can't place it, it's the company that is locked in a patent battle with Apple over health tracking tech on the Apple Watch. Source 1 (in Korean) | Source 2
Korea Herald
07-05-2025
- Business
- Korea Herald
Samsung bets on audio growth with $350m Sound United deal
Latest takeover marks tech giant's 1st M&A since $8 billion Harman acquisition in 2016 Samsung Electronics is strengthening its audio business by acquiring Masimo's Sound United consumer audio business for a price of $350 million. According to Samsung on Wednesday, its audio subsidiary Harman International plans to close the transaction by the end of this year as it looks to further solidify its leadership in the fast-growing global audio market. The company estimated that the consumer audio market is expected to reach $70 billion by 2029 from $60.8 billion in 2025. 'This acquisition represents a strategic step forward in the expansion of Harman's core audio business and footprint across key product categories such as home audio, headphones, hi-fi components and car audio,' said Dave Rogers, president of Harman's lifestyle division. Samsung's latest takeover marks its largest acquisition since the Korean electronics giant bought Harman for $8 billion in 2016. 'It complements our existing strengths and opens new avenues for growth. Sound United's portfolio of world-class audio brands, including Bowers & Wilkins, Denon and Marantz, will join Harman's iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam and Revel,' said Rogers. 'Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.' Bowers & Wilkins, founded in the United Kingdom in 1966, is a luxury audio brand well-known for its creative designs, luxurious materials and high-quality sound. Nautilus, B&W's flagship loudspeaker launched in 1993, costs over 150 million won ($107,000) per unit. Denon, a producer of high-quality home theater and audio equipment, has over a century of history and invented the first CD player. Marantz is famous for making high-performance amplifiers and receivers. According to Samsung, Harman maintained its top position last year, accounting for approximately 60 percent of the portable audio market worldwide. Building on the already-stacked car audio lineup featuring industry-leading names such as Harman Kardon, JBL and AKG, Samsung said it plans to expand its portfolio with B&W and other brands to offer excellent audio experiences and sound services to automakers and consumers. Samsung emphasized that the audio business acquisition will strengthen the competitiveness of its mobile and TV sound and audio technologies while creating synergy for consumer experiences. The company has improved the sound quality of its smartphones, tablets, laptops and earphones, utilizing Harman's sound tuning technologies and expertise. Samsung previously said during its annual shareholders' meeting in March that it would seek meaningful mergers and acquisitions to ease investor concerns about the firm's growth, with plans to achieve practical results this year. The acquisition came after Masimo, a Nasdaq-listed global medical technology firm, announced earlier that it would review its consumer audio business and support the company's strategic focus on driving innovation in its core healthcare business. 'Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies,' said Katie Szyman, CEO of Masimo. 'This transaction aligns with these objectives. Our consumer audio business and its talented team will be well-positioned for growth and success under Harman's leadership.'
