Masimo Corporation's (NASDAQ:MASI) stock surged 11.24% in pre-market trading on Wednesday, February 26th, 2025, driven by the company's strong fourth-quarter results and upbeat guidance for its core healthcare business. The medical technology firm's strategic shift to concentrate solely on patient monitoring and healthcare innovation has fueled optimism among investors.

In its Q4 2024 earnings call, Masimo reported a 9% increase in consolidated revenues to $601 million, with its healthcare segment registering a 9% growth to $368 million. The company's non-GAAP earnings per share soared 44% year-over-year to $1.80, reflecting substantial improvements in operating margins and profitability.

Masimo's strategic realignment, which included rationalizing its R&D project portfolio, reducing corporate overhead costs, and optimizing its cost structure, has already begun yielding positive results. The company raised its 2025 non-GAAP operating margin guidance to a range of 27.5% to 28%, up from its previous projection of 26.5%, fueled by these cost-cutting initiatives and a laser-focus on its core healthcare operations.