Masimo names interim CEO as activist board members step in; Joe Kiani leaves amid legal conflict – Masimo (NASDAQ:MASI)

Masimo Corporation MASS Shares will trade higher on Wednesday.

Michelle Brennan, a current Masimo board member, has stepped into the role of interim CEO following Joe Kiani’s announcement of his resignation as CEO.

In a regulatory filing, the company disclosed that Kiani filed a lawsuit in California state court on Sept. 19 regarding his employment contract, as amended, seeking a declaratory judgment that he properly terminated his employment for “good cause.” Masimo said its board is evaluating Kiani’s notice, as well as his lawsuit against the company.

In addition, Darlene Solomon and Bill Jellison, both Politan Capital Management nominees who were elected by shareholders at the September 19 annual meeting, officially joined the board. Joe Kiani was not elected to the board at the meeting.

Masimo’s annual shareholder meeting, previously scheduled for July 25, was moved to September 19. Masimo filed a lawsuit in federal court against Politan and its founder and CIO Quentin Koffey. Koffey is also a member of Masimo’s board.

In addition, the company said its board remains committed to its previously announced review of alternatives for both the consumer audio and consumer healthcare businesses. They are eager to provide an update on value creation initiatives, including the ongoing strategic review, soon.

Also read: Patient monitoring device maker Masimo considers spinning off consumer business as activist investor seeks board presence

For the third quarter of 2024, Masimo reiterated its non-GAAP financial guidance previously provided on August 6, 2024.

The company is forecasting fiscal 2024 revenue of $2.085 billion to $2.135 billion, compared with estimates of $2.1 billion. Masimo is forecasting fiscal 2024 earnings per share of $3.80 to $4.00, compared with estimates of $3.88.

“We are excited about the company’s strong momentum and future growth prospects and look forward to sharing more details on our upcoming third-quarter earnings conference call next month,” said CFO Micah Young and COO Bilal Muhsin.

Masimo expects third-quarter revenue to be in a range of $495 million to $515 million, compared with the consensus estimate of $502.19 million, and it predicts adjusted earnings per share to be in a range of $0.81 to $0.86, compared with the consensus estimate of $0.84.

Price action: MASI shares were up 5.55% to $133.19, as of last check on Wednesday.

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