Merit Medical Systems
The 10-second takeaway
For the quarter ended March 31 (Q1), Merit Medical Systems beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margin expanded, operating margin shrank, and net margin contracted.
Merit Medical Systems notched revenue of $95.6 million. The four analysts polled by S&P Capital IQ foresaw revenue of $94.0 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $86.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.14. The five earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.14 for Q1 were 22% lower than the prior-year quarter's $0.18 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 46.2%, 30 basis points better than the prior-year quarter. Operating margin was 8.6%, 330 basis points worse than the prior-year quarter. Net margin was 6.0%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $99.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $395.3 million. The average EPS estimate is $0.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 89 members out of 94 rating the stock outperform, and five members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 20 give Merit Medical Systems a green thumbs-up.
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 $15.50.
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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.