Merit Medical Systems Increases Sales but Misses Estimates on Earnings

Before you go, we thought you'd like these...
Before you go close icon

Merit Medical Systems (NAS: 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.

Looking for alternatives to Merit Medical Systems? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

The article Merit Medical Systems Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners