Merit Medical Systems
The 10-second takeaway
For the quarter ended March 31 (Q1), Merit Medical Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Merit Medical Systems recorded revenue of $103.9 million. The five analysts polled by S&P Capital IQ looked for revenue of $109.2 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $95.6 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 $0.10. The four earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.10 for Q1 were 29% lower than the prior-year quarter's $0.14 per share. GAAP EPS of $0.02 for Q1 were 86% lower than the prior-year quarter's $0.14 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 41.4%, 480 basis points worse than the prior-year quarter. Operating margin was 1.7%, 690 basis points worse than the prior-year quarter. Net margin was 0.6%, 540 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $115.3 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $455.1 million. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 84 members out of 89 rating the stock outperform, and five members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 $15.40.
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