Disruptions in the supply chain and post-pandemic revenue declines could not stop Masimo from shining in 3Q21 earnings. The sensor company beat analyst estimates and saw revenue grow by 10%.  The Irvine, CA-based company’s product revenue was $307.4 million compared to the $278.1 million reported in 3Q20.

During an earnings call, Micah Young, Masimo Executive VP and CFO, Masimo, addressed the growth and gave some reasons behind it.

“Most encouragingly, our sensor revenues increased by 2% sequentially vs. the second quarter of 2021 in contrast to the typical seasonal decline we've experienced for the same sequential periods and prior years,” Young said according to a transcript from The Motely Fool. “This represents another sign of a rebound in sensor volumes associated with the ongoing recovery in hospital sensors in combination with increased sensor utilization coming from our large and growing installed base.”

The company specifically addressed the pain in the supply chain and how it was able to offset many of these disruptions.

“An important topic on many people's minds is the ongoing impact of the COVID pandemic on businesses in general and for Masimo from disruptions in the supply chain to hospital admissions and our sensor volumes,”Masimo CEO Joe Kiani said according to a transcript from The Motley Fool.  “Our team has done a superb job mitigating supply chain disruptions and the recent hospitalization due to COVID have been geographically concentrated and therefore, have had a smaller effect on our sensor volumes than what we experienced in 2020.”

According to The Motley Fool transcript, Kiani said “in addition, the temporary reduction of sensor volumes due to postponed surgeries in certain geographies has been offset by increased utilization in other geographies.”

The company said it was now adjusting full-year revenue estimates from $1.216 billion to $1.230 billion.

Marie Thibault, an analyst with BTIG, and former Managing Editor of MD+DI said in the research note that 3Q21 earnings were a “big beat” for the company.

“With Masimo’s lengthy track record of beat-and-raise guidance, improving elective procedure volumes, continued contract wins, and sticky expansion of monitoring within the hospital, we believe the implied Q4 outlook is more than achievable,” Thibault said in research notes “Predictably, 2022 is now in focus. Upbeat commentary hinted at strong revenue growth in 2022 (low-double-digits possible) but also potential for added spending on commercial efforts.”