How did MASI's Q4 2024 EPS outperform forecasts?

Masimo's Q4 2024 diluted EPS exceeded estimates due to strong revenue growth and improved margins, despite strategic challenges:

1. **Revenue Growth**: Consolidated revenue reached $601 million, marking a 9% increase on a constant currency basis. Healthcare revenue grew by 9% to $368 million, while non-healthcare revenue surged by 11% to $232 million. This robust growth outpaced analyst expectations, which had estimated revenue at $591.64 million.
2. **Operating Profit**: The company reported an operating profit of $134 million, reflecting a 46% growth. This significant increase indicates efficient management and a strong market presence.
3. **Gross Margin**: Masimo maintained a healthy gross margin of 52% consolidated, with 63% for healthcare and 35% for non-healthcare segments. This demonstrates effective cost management and the ability to maintain profitability across various business lines.
4. **Market Position**: Masimo's leadership in noninvasive patient monitoring technology and its innovative product portfolio, such as Masimo rainbow SET platform, have positioned it well in the market. The company's focus on bringing new products to market and expanding into adjacent markets has contributed to its revenue growth.

In summary, Masimo's Q4 2024 EPS outperformed forecasts due to strong revenue growth, particularly in the healthcare segment, improved operating profit, and effective cost management. These factors collectively contributed to the company's financial strength and exceeded market expectations.