We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Merit Medical (MMSI) Q2 Earnings & Revenues Beat, '24 View Up
Read MoreHide Full Article
Merit Medical Systems, Inc. (MMSI - Free Report) delivered adjusted earnings per share (EPS) of 92 cents in the second quarter of 2024, up 16.8% year over year. The figure surpassed the Zacks Consensus Estimate by 4.6%.
The adjustments include expenses related to the amortization of intangibles, and Medical Device Regulation expenses, among others.
GAAP EPS for the quarter was 61 cents compared with 35 cents in the year-ago period.
Revenues in Detail
Merit Medical registered revenues of $338 million in the second quarter, up 5.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.9%.
Total revenues at constant exchange rate (CER) inched up 6.6% year over year, whereas CER, organic revenues increased 5% year over year.
Geographic Results
The U.S. sales amounted to $194.7 million, which increased 8.4% on a reported basis and 8.5% at CER year over year. This figure compares to our second-quarter projection of $188.3 million.
International sales amounted to $143.3 million, up 2% on a reported basis and 4% at CER year over year. This figure compares to our second-quarter projection of $146.8 million.
Revenues from the Asia-Pacific region were $66.8 million (down 2.8% and up 0.5% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $69.8 million.
Revenues from Europe, the Middle East, and Africa region were $62.3 million (up 4.5% and 5.2% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $62.1 million.
Revenues from the Rest of World region were $14.2 million (up 17.1% and 18.4% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $14.9 million.
Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported second-quarter revenues of $327.8 million, up 5.3% on a reported basis and 6.3% at CER year over year. This figure compares to our segmental projection of $325 million for the second quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $139.2 million, up 10.6% on a reported basis and 11.4% at CER year over year. This compares to our projection of $136.5 million.
CI revenues of $93.9 million rose 0.1% on a reported basis and 1.5% at CER year over year. This compares to our projection of $98.6 million.
CPS revenues improved 2.1% on a reported basis and 3.4% at CER year over year to $50.4 million. This compares to our projection of $47.8 million.
OEM revenues improved 4.9% on a reported basis and 5.1% at CER year over year to $44.3 million. This compares to our projection of $42.1 million.
Endoscopy devices’ revenues totaled $10.2 million, up 16% year over year on a reported basis and 16.4% at CER. This figure compares to our segmental projection of $10 million for the second quarter.
Margins
In the quarter under review, Merit Medical’s gross profit rose 5.4% to $161.1 million. The gross margin contracted 10 basis points (bps) to 47.7%. We had projected 50% of gross margin for the second quarter.
Selling, general & administrative expenses decreased 6.3% to $94.6 million. Research and development expenses rose 0.7% year over year to $20.3 million. Total operating expenses of $115.2 million decreased 7.1% year over year.
Operating profit totaled $45.9 million, reflecting a 59.5% increase from the prior-year quarter. The adjusted operating margin in the second quarter expanded 100 bps to 20.1%.
Financial Position
Merit Medical exited second-quarter 2024 with cash and cash equivalents of $636.7 million compared with $581.9 million at the end of first-quarter 2024. Total debt at the end of second-quarter 2024 was $801.3 million compared with $800.1 million at the first quarter of 2024-end.
Cumulative net cash flow provided by operating activities at the end of second-quarter 2024 was $104.7 million compared with $31.8 million a year ago.
2024 Guidance
Merit Medical has raised its 2024 outlook.
Net revenues for 2024 are now projected to be between $1.335 billion and $1.345 billion compared with prior guidance of $1.324 billion and $1.340 billion (reflecting an increase of approximately 6-7% over the comparable reported figures of 2023). The Zacks Consensus Estimate stands at $1.33 billion.
Net revenues from the Cardiovascular segment are now expected to be in the range of $1.281 billion-$1.289 billion, representing an increase of approximately 5-6% over the comparable reported figures of 2023.
The Endoscopy segment’s net revenues are now projected to be between $54 million and $56 million, representing an increase of approximately 45-52% over the comparable reported figures of 2023.
Adjusted EPS for 2024 is now projected to be in the range of $3.27-$3.35 compared with prior guidance of $3.22-$3.31, representing an increase of approximately 15-17% over the comparable reported figures of 2023. The Zacks Consensus Estimate is pegged at $3.30.
Our Take
Merit Medical exited the second quarter of 2024 with better-than-expected results. The year-over-year uptick in the top line and bottom line was impressive. The company saw revenue growth in both its segments and across the majority of the product categories within its Cardiovascular unit. Robust performances in the United States and outside were impressive. The expansion in operating margin bodes well for the stock.
Per the second-quarter earnings release, Merit Medical announced that its application for premarket approval of a Wrapsody Cell-Impermeable Endoprosthesis device was submitted to the FDA in the second quarter.
In July, Merit Medical announced it had executed an asset purchase agreement with EndoGastric Solutions, Inc. for a total cash consideration of approximately $105 million. This acquisition is likely to enhance the company’s product portfolio in existing clinical specialties while expanding its global footprint in the multi-billion-dollar gastrointestinal market.
In May, Merit Medical announced the U.S. commercial release of the basixSKY Inflation Device. BasixSKY is the latest addition to Merit’s comprehensive inflation device portfolio, which includes both digital and analog devices.
However, the current challenging global macro environment raises our apprehension.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation (BSX - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) .
Boston Scientific reported second-quarter 2024 adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate by 6.9%. Revenues of $4.12 billion surpassed the Zacks Consensus Estimate by 2.5%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
Hologic, carrying a Zacks Rank of 2 at present, has a long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.50%.
Hologic reported second-quarter 2024 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 3.9%. Revenues of $1 billion surpassed the Zacks Consensus Estimate by 1.1%.
Universal Health Services reported second-quarter 2024 adjusted EPS of $4.31, which beat the Zacks Consensus Estimate by 27.9%. Revenues of $3.9 billion surpassed the Zacks Consensus Estimate by 1.5%. It currently sports a Zacks Rank of 1.
Universal Health Services has a long-term growth rate of 18%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Merit Medical (MMSI) Q2 Earnings & Revenues Beat, '24 View Up
Merit Medical Systems, Inc. (MMSI - Free Report) delivered adjusted earnings per share (EPS) of 92 cents in the second quarter of 2024, up 16.8% year over year. The figure surpassed the Zacks Consensus Estimate by 4.6%.
The adjustments include expenses related to the amortization of intangibles, and Medical Device Regulation expenses, among others.
GAAP EPS for the quarter was 61 cents compared with 35 cents in the year-ago period.
Revenues in Detail
Merit Medical registered revenues of $338 million in the second quarter, up 5.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.9%.
Total revenues at constant exchange rate (CER) inched up 6.6% year over year, whereas CER, organic revenues increased 5% year over year.
Geographic Results
The U.S. sales amounted to $194.7 million, which increased 8.4% on a reported basis and 8.5% at CER year over year. This figure compares to our second-quarter projection of $188.3 million.
International sales amounted to $143.3 million, up 2% on a reported basis and 4% at CER year over year. This figure compares to our second-quarter projection of $146.8 million.
Revenues from the Asia-Pacific region were $66.8 million (down 2.8% and up 0.5% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $69.8 million.
Revenues from Europe, the Middle East, and Africa region were $62.3 million (up 4.5% and 5.2% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $62.1 million.
Revenues from the Rest of World region were $14.2 million (up 17.1% and 18.4% on a reported basis and CER, respectively). This figure compares to our second-quarter projection of $14.9 million.
Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported second-quarter revenues of $327.8 million, up 5.3% on a reported basis and 6.3% at CER year over year. This figure compares to our segmental projection of $325 million for the second quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $139.2 million, up 10.6% on a reported basis and 11.4% at CER year over year. This compares to our projection of $136.5 million.
CI revenues of $93.9 million rose 0.1% on a reported basis and 1.5% at CER year over year. This compares to our projection of $98.6 million.
CPS revenues improved 2.1% on a reported basis and 3.4% at CER year over year to $50.4 million. This compares to our projection of $47.8 million.
OEM revenues improved 4.9% on a reported basis and 5.1% at CER year over year to $44.3 million. This compares to our projection of $42.1 million.
Endoscopy devices’ revenues totaled $10.2 million, up 16% year over year on a reported basis and 16.4% at CER. This figure compares to our segmental projection of $10 million for the second quarter.
Margins
In the quarter under review, Merit Medical’s gross profit rose 5.4% to $161.1 million. The gross margin contracted 10 basis points (bps) to 47.7%. We had projected 50% of gross margin for the second quarter.
Selling, general & administrative expenses decreased 6.3% to $94.6 million. Research and development expenses rose 0.7% year over year to $20.3 million. Total operating expenses of $115.2 million decreased 7.1% year over year.
Operating profit totaled $45.9 million, reflecting a 59.5% increase from the prior-year quarter. The adjusted operating margin in the second quarter expanded 100 bps to 20.1%.
Financial Position
Merit Medical exited second-quarter 2024 with cash and cash equivalents of $636.7 million compared with $581.9 million at the end of first-quarter 2024. Total debt at the end of second-quarter 2024 was $801.3 million compared with $800.1 million at the first quarter of 2024-end.
Cumulative net cash flow provided by operating activities at the end of second-quarter 2024 was $104.7 million compared with $31.8 million a year ago.
2024 Guidance
Merit Medical has raised its 2024 outlook.
Net revenues for 2024 are now projected to be between $1.335 billion and $1.345 billion compared with prior guidance of $1.324 billion and $1.340 billion (reflecting an increase of approximately 6-7% over the comparable reported figures of 2023). The Zacks Consensus Estimate stands at $1.33 billion.
Net revenues from the Cardiovascular segment are now expected to be in the range of $1.281 billion-$1.289 billion, representing an increase of approximately 5-6% over the comparable reported figures of 2023.
The Endoscopy segment’s net revenues are now projected to be between $54 million and $56 million, representing an increase of approximately 45-52% over the comparable reported figures of 2023.
Adjusted EPS for 2024 is now projected to be in the range of $3.27-$3.35 compared with prior guidance of $3.22-$3.31, representing an increase of approximately 15-17% over the comparable reported figures of 2023. The Zacks Consensus Estimate is pegged at $3.30.
Our Take
Merit Medical exited the second quarter of 2024 with better-than-expected results. The year-over-year uptick in the top line and bottom line was impressive. The company saw revenue growth in both its segments and across the majority of the product categories within its Cardiovascular unit. Robust performances in the United States and outside were impressive. The expansion in operating margin bodes well for the stock.
Per the second-quarter earnings release, Merit Medical announced that its application for premarket approval of a Wrapsody Cell-Impermeable Endoprosthesis device was submitted to the FDA in the second quarter.
In July, Merit Medical announced it had executed an asset purchase agreement with EndoGastric Solutions, Inc. for a total cash consideration of approximately $105 million. This acquisition is likely to enhance the company’s product portfolio in existing clinical specialties while expanding its global footprint in the multi-billion-dollar gastrointestinal market.
In May, Merit Medical announced the U.S. commercial release of the basixSKY Inflation Device. BasixSKY is the latest addition to Merit’s comprehensive inflation device portfolio, which includes both digital and analog devices.
However, the current challenging global macro environment raises our apprehension.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
Zacks Rank and Key Picks
Merit Medical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation (BSX - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) .
Boston Scientific reported second-quarter 2024 adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate by 6.9%. Revenues of $4.12 billion surpassed the Zacks Consensus Estimate by 2.5%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
Hologic, carrying a Zacks Rank of 2 at present, has a long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.50%.
Hologic reported second-quarter 2024 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 3.9%. Revenues of $1 billion surpassed the Zacks Consensus Estimate by 1.1%.
Universal Health Services reported second-quarter 2024 adjusted EPS of $4.31, which beat the Zacks Consensus Estimate by 27.9%. Revenues of $3.9 billion surpassed the Zacks Consensus Estimate by 1.5%. It currently sports a Zacks Rank of 1.
Universal Health Services has a long-term growth rate of 18%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.