By Denny Jacob
Masimo Corp. announced on Monday that it will be lowering its full-year revenue guidance due to lower than expected revenue in the second quarter.
The manufacturer of patient monitoring technologies expects second-quarter revenue to be in the range of $453 million to $457 million. Of this, healthcare revenue is estimated to be between $280 million and $282 million, while non-healthcare revenue is projected to be around $173 million and $175 million.
Masimo attributed the lower healthcare revenue to delays in large orders that were expected in the second quarter. Additionally, non-healthcare revenue fell short of expectations due to a decrease in demand across various audio categories and geographic regions.
In response to the second-quarter results, the Irvine-based company plans to implement cost-reduction measures in the second half of the year. More details about these actions will be provided along with the complete quarterly results on Aug. 8.
Looking ahead, Masimo has revised its healthcare revenue guidance for 2023 to be in the range of $1.3 billion and $1.45 billion. The upper end of this range is still being evaluated and may exceed expectations. The company also lowered its annual revenue guidance for the non-healthcare business to a range of $800 million and $850 million.
Previously, Masimo had forecasted healthcare revenue between $1.45 billion and $1.47 billion, and non-healthcare revenue between $965 million and $995 million.
Following the announcement, shares of Masimo Corp. dropped 25% to $109.87 in aftermarket trading.
