Pre-earnings brief
Reports
Tue, Aug 4, 2026
Est. EPS
—
Est. revenue
—
Implied move
±13.8%
EPS beat rate
75%
Masimo Corporation is a healthcare technology company that specializes in non-invasive monitoring solutions. With a market cap of $9 billion, it plays a crucial role in improving patient outcomes through advanced medical devices and technologies in the healthcare equipment sector.
Last quarter
In Q1-2026, Masimo reported an EPS of $1.09, falling short of the expected $1.41, marking a significant surprise. The stock saw a slight increase of 0.21% the following day despite the miss.
Management promises and guidance
EPS beat streak
0Q
EPS beat rate
75%
Avg EPS surprise
-28.73%
Avg 1-day reaction
+1.41%
Overall expectations for Masimo's upcoming earnings are cautious due to the recent EPS miss. Investors are looking for signs of recovery and growth in revenue.
Bull case
If Masimo can demonstrate strong revenue growth and improved profitability, it could restore investor confidence and lead to a positive stock reaction.
Bear case
Conversely, if the company continues to miss earnings expectations or fails to provide clear guidance, it could lead to further declines in stock price.
The print will turn on these.
Q1
What will be the EPS for Q2-2026?
Given the significant miss last quarter, investors will be keenly focused on whether Masimo can return to profitability.
Q2
How is revenue growth trending compared to previous quarters?
Investors need to understand if the company is successfully expanding its market presence, which is crucial for future growth.
Why consensus could be wrong
The Street may be underestimating Masimo's potential for a strong recovery in revenue growth, especially given its innovative product pipeline.
Supporting evidence
Despite recent misses, the company has a history of bouncing back with better-than-expected results.
Options pricing suggests a larger move than historical averages, indicating potential for volatility.
Management's commitment to operational efficiencies could lead to improved margins.
Key risk
If the EPS comes in above $1.50, it could significantly shift market sentiment and challenge the current cautious outlook.
Pre-commit to what would confirm each case.
The core thesis revolves around Masimo's ability to rebound from recent earnings misses and demonstrate solid growth metrics.
Bull confirmed if
An EPS of $1.50 or better would confirm the bull case and suggest a strong recovery.
Bear confirmed if
An EPS below $1.00 would confirm the bear case and raise concerns about ongoing profitability issues.
What the market is pricing for the move.
Implied Move
±13.81%
Historical Avg
±1.8%
The options market is pricing in a significant potential move, indicating uncertainty about the upcoming earnings results.
Options are pricing ±13.8% while MASI has averaged ±1.8% over the last 8 prints — setup is pricing rich.
ATM IV
0.2%
30d HV
2.3%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Masimo beats expectations, history suggests a positive stock reaction of around +1.83%, confirming a recovery narrative.
In line / cautious
If results come in line with expectations, management commentary could drive a muted response, reflecting ongoing uncertainty.
Miss
A miss could lead to a downside reaction, with historical data suggesting an average move of +0.14% when expectations are not met.
The lines on the call that would change the story.
—
Est. EPS
—
Est. Rev
—
Impl. Move
±12.7%