Merit Medical Systems
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Merit Medical Systems met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share increased.
Gross margins contracted, operating margins dropped, and net margins grew.
Merit Medical Systems booked revenue of $91.1 million. The five analysts polled by S&P Capital IQ predicted net sales of $92.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $81.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.15. The five earnings estimates compiled by S&P Capital IQ predicted $0.18 per share on the same basis. GAAP EPS of $0.12 for Q4 were 9.1% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.3%, 60 basis points worse than the prior-year quarter. Operating margin was 8.8%, 180 basis points worse than the prior-year quarter. Net margin was 5.5%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $94.4 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $394.9 million. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 86 members rating the stock outperform and five members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Merit Medical Systems a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merit Medical Systems is outperform, with an average price target of $17.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.