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Merit Medical's (MMSI) Q4 Earnings, Revenues Top Estimates
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Merit Medical Systems, Inc. (MMSI - Free Report) delivered adjusted earnings per share (“EPS”) of 71 cents in the fourth quarter of 2021, up 31.5% year over year. The figure also surpassed the Zacks Consensus Estimate by 42%.
The adjustments include expenses related to amortization of intangibles, and corporate transformation and restructuring, among others.
GAAP EPS for the quarter was 36 cents a share, up 33.3% year over year.
Full-year adjusted EPS was $2.37, reflecting a 43.6% increase over 2020. The metric surpassed the Zacks Consensus Estimate by 9.7%.
Revenues in Detail
Merit Medical registered revenues of $278.5 million in the fourth quarter, up 7.9% year over year. The figure surpassed the Zacks Consensus Estimate by 3.2%.
Constant exchange rate (“CER”), organic revenues inched up 8.4% year over year, on the back of 6.6% growth in the United States and 10.8% growth outside the United States during the period.
Per management, the top line was primarily driven by low double-digit growth year over year in sales of Merit Medical’s peripheral and cardiac intervention products, and mid-teens year-over-year growth in sales of original equipment manufacturer (“OEM”) products.
Full-year revenues were $1.07 billion, reflecting an 11.5% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.
CER, organic revenues for 2021 climbed 10.4% over 2020.
Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported fourth-quarter revenues of $270.2 million, up 8.1% year over year.
The Cardiovascular segment includes the following product categories: Peripheral Intervention, Cardiac Intervention, Custom Procedural Solutions and OEM.
Peripheral Intervention product line revenues were $105.5 million, up 11% year over year. Cardiac Intervention revenues rose 11.7% to $80.4 million. OEM revenues climbed 15.8% to $33.8 million. However, Custom Procedural Solutions revenues declined 6.3% to $50.5 million.
Endoscopy devices revenues totaled $8.3 million, up 4.2% year over year, driven primarily by a 27% increase in sales of the EndoMAXX line.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Merit Medical’s gross profit rose 15.9% to $128.8 million. Gross margin expanded 317 basis points (bps) to 46.3%.
Selling, general & administrative expenses fell 4.1% to $76.6 million. Research and development expenses went up 34.8% year over year to $20.4 million. Adjusted operating expenses of $97 million increased 2.1% year over year.
Adjusted operating profit totaled $31.8 million, reflecting a 97.4% uptick from the prior-year quarter. Adjusted operating margin in the fourth quarter expanded by 517 bps to 11.4%.
Financial Position
Merit Medical exited full-year 2021 with cash and cash equivalents of $67.8 million compared with $56.9 million at the end of 2020. Total debt (including current portion) at the end of full-year 2021 was $242.8 million compared with $351.2 million at the end of 2020.
Cumulative net cash flow from operating activities at the end of full-year 2021 was $ 147.2 million compared with $165.3 million a year ago.
2022 Guidance
Merit Medical has initiated its 2022 outlook.
Net revenues for 2022 are projected between $1.117-$1.140 billion, reflecting an increase of approximately 4-6% over the comparable reported figures of 2021. The Zacks Consensus Estimate for the same is pegged at $1.12 billion.
Net revenues from the cardiovascular segment are expected in the range of $1.083-$1.106 billion, representing an increase of approximately 4-6% over the comparable reported figures of 2021.
Endoscopy segment’s net revenues are expected in the range of $ 33.5-$34.1 million, reflecting an uptick of around 6-8% over the comparable reported figures of 2021.
Adjusted EPS for 2022 are projected in the range of $2.41-$2.56. The Zacks Consensus Estimate for the same stands at $2.48.
Our Take
Merit Medical exited the fourth quarter of 2021 with better-than-expected results. The company saw revenue growth in both its Cardiovascular and Endoscopy segments, as well as across the majority of its product categories within its Cardiovascular unit. Solid product sales are also promising. Robust performances in both the United States and outside are impressive. Strong execution and improving customer demand trends pushed up the overall top line, which is encouraging.
The company stands to benefit from the execution of its global growth and profitability plan. A robust product line and other internally developed products raise investors’ optimism on the stock. Expansion of both margins also bodes well.
However, fall in Merit Medical’s Procedural Solutions revenues is disappointing. Stiff competition and higher consolidation in the healthcare industry are dampeners.
Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , llscripts Healthcare Solutions, Inc. (MDRX - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 adjusted EPS of $2.95, which beat the Zacks Consensus Estimate by 14.3%. Revenues of $1.36 billion outpaced the consensus mark by 0.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20%.
Allscripts, sporting a Zacks Rank #1, reported fourth-quarter 2021 adjusted EPS of 79 cents, which beat the Zacks Consensus Estimate by 154.8%. Revenues of $391.7 million outpaced the consensus mark by 0.1%.
Allscripts has an estimated long-term growth rate of 12.4%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 64.8%.
Henry Schein reported fourth-quarter 2021 adjusted EPS of $1.07, which surpassed the Zacks Consensus Estimate by 18.9%. Fourth-quarter revenues of $3.33 billion outpaced the Zacks Consensus Estimate by 4.7%. It currently has a Zacks Rank #1.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%.
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Merit Medical's (MMSI) Q4 Earnings, Revenues Top Estimates
Merit Medical Systems, Inc. (MMSI - Free Report) delivered adjusted earnings per share (“EPS”) of 71 cents in the fourth quarter of 2021, up 31.5% year over year. The figure also surpassed the Zacks Consensus Estimate by 42%.
The adjustments include expenses related to amortization of intangibles, and corporate transformation and restructuring, among others.
GAAP EPS for the quarter was 36 cents a share, up 33.3% year over year.
Full-year adjusted EPS was $2.37, reflecting a 43.6% increase over 2020. The metric surpassed the Zacks Consensus Estimate by 9.7%.
Revenues in Detail
Merit Medical registered revenues of $278.5 million in the fourth quarter, up 7.9% year over year. The figure surpassed the Zacks Consensus Estimate by 3.2%.
Constant exchange rate (“CER”), organic revenues inched up 8.4% year over year, on the back of 6.6% growth in the United States and 10.8% growth outside the United States during the period.
Per management, the top line was primarily driven by low double-digit growth year over year in sales of Merit Medical’s peripheral and cardiac intervention products, and mid-teens year-over-year growth in sales of original equipment manufacturer (“OEM”) products.
Full-year revenues were $1.07 billion, reflecting an 11.5% improvement from the year-ago period. The metric was in line with the Zacks Consensus Estimate.
CER, organic revenues for 2021 climbed 10.4% over 2020.
Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported fourth-quarter revenues of $270.2 million, up 8.1% year over year.
The Cardiovascular segment includes the following product categories: Peripheral Intervention, Cardiac Intervention, Custom Procedural Solutions and OEM.
Peripheral Intervention product line revenues were $105.5 million, up 11% year over year. Cardiac Intervention revenues rose 11.7% to $80.4 million. OEM revenues climbed 15.8% to $33.8 million. However, Custom Procedural Solutions revenues declined 6.3% to $50.5 million.
Endoscopy devices revenues totaled $8.3 million, up 4.2% year over year, driven primarily by a 27% increase in sales of the EndoMAXX line.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
Margins
In the quarter under review, Merit Medical’s gross profit rose 15.9% to $128.8 million. Gross margin expanded 317 basis points (bps) to 46.3%.
Selling, general & administrative expenses fell 4.1% to $76.6 million. Research and development expenses went up 34.8% year over year to $20.4 million. Adjusted operating expenses of $97 million increased 2.1% year over year.
Adjusted operating profit totaled $31.8 million, reflecting a 97.4% uptick from the prior-year quarter. Adjusted operating margin in the fourth quarter expanded by 517 bps to 11.4%.
Financial Position
Merit Medical exited full-year 2021 with cash and cash equivalents of $67.8 million compared with $56.9 million at the end of 2020. Total debt (including current portion) at the end of full-year 2021 was $242.8 million compared with $351.2 million at the end of 2020.
Cumulative net cash flow from operating activities at the end of full-year 2021 was $ 147.2 million compared with $165.3 million a year ago.
2022 Guidance
Merit Medical has initiated its 2022 outlook.
Net revenues for 2022 are projected between $1.117-$1.140 billion, reflecting an increase of approximately 4-6% over the comparable reported figures of 2021. The Zacks Consensus Estimate for the same is pegged at $1.12 billion.
Net revenues from the cardiovascular segment are expected in the range of $1.083-$1.106 billion, representing an increase of approximately 4-6% over the comparable reported figures of 2021.
Endoscopy segment’s net revenues are expected in the range of $ 33.5-$34.1 million, reflecting an uptick of around 6-8% over the comparable reported figures of 2021.
Adjusted EPS for 2022 are projected in the range of $2.41-$2.56. The Zacks Consensus Estimate for the same stands at $2.48.
Our Take
Merit Medical exited the fourth quarter of 2021 with better-than-expected results. The company saw revenue growth in both its Cardiovascular and Endoscopy segments, as well as across the majority of its product categories within its Cardiovascular unit. Solid product sales are also promising. Robust performances in both the United States and outside are impressive. Strong execution and improving customer demand trends pushed up the overall top line, which is encouraging.
The company stands to benefit from the execution of its global growth and profitability plan. A robust product line and other internally developed products raise investors’ optimism on the stock. Expansion of both margins also bodes well.
However, fall in Merit Medical’s Procedural Solutions revenues is disappointing. Stiff competition and higher consolidation in the healthcare industry are dampeners.
Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , llscripts Healthcare Solutions, Inc. (MDRX - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 adjusted EPS of $2.95, which beat the Zacks Consensus Estimate by 14.3%. Revenues of $1.36 billion outpaced the consensus mark by 0.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20%.
Allscripts, sporting a Zacks Rank #1, reported fourth-quarter 2021 adjusted EPS of 79 cents, which beat the Zacks Consensus Estimate by 154.8%. Revenues of $391.7 million outpaced the consensus mark by 0.1%.
Allscripts has an estimated long-term growth rate of 12.4%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 64.8%.
Henry Schein reported fourth-quarter 2021 adjusted EPS of $1.07, which surpassed the Zacks Consensus Estimate by 18.9%. Fourth-quarter revenues of $3.33 billion outpaced the Zacks Consensus Estimate by 4.7%. It currently has a Zacks Rank #1.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%.