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What's in Store for Merit Medical (MMSI) in Q3 Earnings?
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Headquartered in South Jordan, Utah, Merit Medical Systems Inc. (MMSI - Free Report) is set to report third-quarter 2016 results on Oct 26.
Last quarter, the company posted earnings of 26 cents per share, which surpassed the Zacks Consensus Estimate by 2 cents. Notably, on an average, Merit Medical beat the Zacks Consensus Estimate by almost 4.36% over the last four quarters.
Meanwhile, Merit Medical represents an impressive one-year return of almost 21.3%, ahead of the S&P’s 3.9% over the same time frame.
Let’s see how things are shaping up for this quarter.
We are upbeat about Merit Medical’s HeRo platform. Notably, the HeRo product line was acquired by Merit Medical from CryoLife (CRY) earlier this year. The launch of Think HeRO Graft Training program is a notable development in the platform and per management, it would provide substantial opportunity to the company.
Merit Medical also received a 510(k) clearance from the FDA for the Elation Pulmonary Dilation Balloon, which is again a key positive.
We are also hopeful about the bountiful prospects in regions like China, Japan and Russia (in addition to the U.S.). In this regard, the company’s results in the last reported quarter were massively driven by its robust performance in Australia and Canada. However, the company has been facing some ‘inventory markup’ issues in Atlanta, which might prove to be a drag on revenues.
Earnings Whispers
Our proven model does not conclusively show that Merit Medical is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Merit Medical is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. Please check our Earnings ESP Filterthat enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Merit Medical carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Ariad Pharmaceuticals Inc. , with an earnings ESP of +5.26% and a Zacks Rank #1. Additionally, the stock represents a stellar one-year return of 38.2%.
Glaukos Corporation (GKOS - Free Report) has an earnings ESP of +200.00% and a Zacks Rank #1. We note that the company represents an impressive one-year return of almost 66.2%.
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What's in Store for Merit Medical (MMSI) in Q3 Earnings?
Headquartered in South Jordan, Utah, Merit Medical Systems Inc. (MMSI - Free Report) is set to report third-quarter 2016 results on Oct 26.
Last quarter, the company posted earnings of 26 cents per share, which surpassed the Zacks Consensus Estimate by 2 cents. Notably, on an average, Merit Medical beat the Zacks Consensus Estimate by almost 4.36% over the last four quarters.
Meanwhile, Merit Medical represents an impressive one-year return of almost 21.3%, ahead of the S&P’s 3.9% over the same time frame.
Let’s see how things are shaping up for this quarter.
MERIT MEDICAL Price and EPS Surprise
MERIT MEDICAL Price and EPS Surprise | MERIT MEDICAL Quote
Factors at Play
We are upbeat about Merit Medical’s HeRo platform. Notably, the HeRo product line was acquired by Merit Medical from CryoLife (CRY) earlier this year. The launch of Think HeRO Graft Training program is a notable development in the platform and per management, it would provide substantial opportunity to the company.
Merit Medical also received a 510(k) clearance from the FDA for the Elation Pulmonary Dilation Balloon, which is again a key positive.
We are also hopeful about the bountiful prospects in regions like China, Japan and Russia (in addition to the U.S.). In this regard, the company’s results in the last reported quarter were massively driven by its robust performance in Australia and Canada. However, the company has been facing some ‘inventory markup’ issues in Atlanta, which might prove to be a drag on revenues.
Earnings Whispers
Our proven model does not conclusively show that Merit Medical is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP for Merit Medical is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 23 cents. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Merit Medical carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Ariad Pharmaceuticals Inc. , with an earnings ESP of +5.26% and a Zacks Rank #1. Additionally, the stock represents a stellar one-year return of 38.2%.
Exelixis Inc. (EXEL - Free Report) , with an earnings ESP of +7.69% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. Notably, the company has a stupendous one-year return of 94.3%.
Glaukos Corporation (GKOS - Free Report) has an earnings ESP of +200.00% and a Zacks Rank #1. We note that the company represents an impressive one-year return of almost 66.2%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>