Masimo Corp MASI reported earnings of 53 cents per share in the first quarter of 2016, which beat the Zacks Consensus Estimate by a dime and increased 39.5% on a year-over-year basis. Masimo Corporation - Earnings Surprise | FindTheBestQuarter DetailsRevenues increased 10.8% year over year to $171.2 million, which was better than the Zacks Consensus Estimate of $165 million. Product revenues improved 10.8% year over year (11.7% at constant currency) to $163.3 million, while revenues from royalty increased 9.7% to $7.9 million.Worldwide direct product revenues (86.3% of product revenues) increased 12.7% on a year-over-year basis to $140.9 million. OEM sales (13.7% of product revenues) rose 0.2% on robust demand for sensors and licenses.Masimo rainbow revenues advanced 39.2% (37% at cc) to $16.9 million, driven by a large order from the Middle East. SpHb revenues improved 164% to $6.1 million backed by strong demand from the region.During the first quarter, SET pulse oximetry and rainbow Pulse CO-Oximetry unit shipments (excluding handheld units) totaled 46,300. Per Masimo, worldwide installed base as of Apr 2, 2016, stood at 1,438,000 units, up 7.3% from 1,340,000 units as of Apr 4, 2015.U.S. product revenues increased 5.8% to $113.5 million. International product revenues increased 24.2% from the year-ago quarter to $49.8 million (up 27.6% at constant currency), driven by strong demand from the EMEA region and Japan.GuidanceFor full-year 2016, Masimo projects total revenues of $677 million, up from the earlier projection of $670 million. Product revenues are expected at around $647 million, up from the previous guidance of $640 million, while Royalty revenue projection is maintained at $30 million. Rainbow revenues are expected to cross $68 million.Masimo forecasts gross margin of approximately 64.7%. Management expects operating expenses of approximately $312 million, down from the earlier guidance of $317 million.Masimo now projects earnings of $1.83 per share, up from the earlier projected figure of $1.69.Zacks Rank & Stocks to ConsiderCurrently, Masimo carries a Zacks Rank #3 (Hold).Better-ranked stocks in the medical instruments industry include Edwards Lifesciences EW, IRadimed IRMD and Abiomed ABMD. While Edwards Lifesciences and IRadimed sport a Zacks Rank #1 (Strong Buy), Abiomed carries a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ABIOMED INC (ABMD): Free Stock Analysis Report MASIMO CORP (MASI): Free Stock Analysis Report IRADIMED CORP (IRMD): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research