Merit Medical Systems
The 10-second takeaway
For the quarter ended June 30 (Q2), Merit Medical Systems missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
Merit Medical Systems booked revenue of $109.9 million. The four analysts polled by S&P Capital IQ expected sales of $112.4 million on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $100.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.15. The three earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.15 for Q2 were 29% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.09 for Q2 were 36% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 42.8%, 400 basis points worse than the prior-year quarter. Operating margin was 6.2%, 400 basis points worse than the prior-year quarter. Net margin was 3.4%, 270 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $111.7 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $446.6 million. The average EPS estimate is $0.51.
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 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 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 $13.25.
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