Merit Medical Systems Beats on Both Top and Bottom Lines
Merit Medical Systems (NAS: MMSI) reported earnings on April 24. Here are the numbers you need to know.
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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At the time this article was published 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. 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.