Masimo shares plunge 24% following disappointing preliminary Q2 results

Masimo (NASDAQ:) stock plummeted more than 24% after-hours following the company’s announced preliminary Q2 revenue results.

The company sees Q2 revenues in the range of $453-$457 million, below the consensus estimate of $553.23M, with healthcare revenue of $280-$282M and non-healthcare revenue of $173-$175M.

Due to lower Q2 revenues, the company plans to cut costs in H2/23. More details will be shared with the complete Q2 financial results on August 8, 2023. Updated guidance for fiscal year 2023 will be provided on the same day.

Management plans to reduce the lower end of healthcare revenue guidance to $1.30 billion from $1.45 billion for the full year. “We are still evaluating the upper end of revenue guidance for the healthcare business, but it could be materially higher than the lower end of the range, as we are still targeting our original guidance,” added the company. Additionally, management anticipates reducing annual revenue guidance for the non-healthcare business to $800-$850 million from $965-$995 million.