Merit Medical Systems Increases Sales but Misses Estimates on Earnings

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 22, 2013 at 12:00AM
Other

Merit Medical Systems (Nasdaq: MMSI) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Merit Medical Systems beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share didn't move. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Merit Medical Systems notched revenue of $102.2 million. The five analysts polled by S&P Capital IQ looked for a top line of $100.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $91.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.15. The five earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. Non-GAAP EPS of $0.15 were the same as the prior-year quarter. GAAP EPS of $0.01 for Q4 were 91% lower 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.

Margin details
For the quarter, gross margin was 44.5%, 260 basis points worse than the prior-year quarter. Operating margin was 4.2%, 540 basis points worse than the prior-year quarter. Net margin was 0.6%, 490 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $108.0 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $449.6 million. The average EPS estimate is $0.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 85 members out of 90 rating the stock outperform, and five members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Merit Medical Systems a green thumbs-up, and one 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 $15.83.

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