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Merit Medical (MMSI) Q4 Earnings and Revenues Beat Estimates
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Merit Medical Systems, Inc’s (MMSI - Free Report) fourth-quarter 2020 adjusted earnings per share (EPS) of 54 cents beat the Zacks Consensus Estimate of 43 cents by 25.6%. Moreover, the bottom line rose 35% from the year-ago quarter.
Further, for 2020, adjusted EPS came in at $1.65, beating the Zacks Consensus Estimate by 5.8%. The figure also improved 13% year over year.
Revenues in Detail
For the quarter, this Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues of $258 million, in line with year-ago figure. On constant-currency basis, the figure fell 1% year over year. Meanwhile, the top line surpassed the Zacks Consensus Estimate by 3%.
For 2020, revenues summed $963.9 million, down 3.1% year over year both on reported and currency-neutral basis. However, the topline beat the Zacks Consensus Estimate by 0.8%.
Segmental Details
The Cardiovascular unit reported fourth-quarter revenues of $250.1 million, up 0.3% year over year on 2% increase in Peripheral Intervention revenues to $95.1 million. Moreover, revenues from Custom Procedural Solutions rose 12.1% to $53.8 million. However, revenues from Cardiac Intervention fell 7.4% to $71.9 million. Also, OEM revenues contracted 4.2% to $29.2 million.
Revenues from the Endoscopy devices totaled $7.9 million, down 6.8% year over year.
Margins
In the quarter under review, gross profit totaled $111.2 million, down 0.4% on a year-over-year basis. Gross margin came in at 43.1% of net revenues, down 19 basis points (bps) year over year.
Adjusted operating profit totaled $16.1 million, up 21.2% year over year.
Adjusted operating margin in the quarter came in at 6.2%, indicating an expansion of 109 bps year over year.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
The company exited the fourth quarter with cash and cash equivalents of $56.9 million, up from $44.3 million at the end of the year- ago period.
2021 Guidance
Net revenues for 2021 are projected between $990 million and $1.01 billion, indicating an increase of 2.7-4.8% year over year. The Zacks Consensus Estimate for the same is pegged at $1.03 billion.
Adjusted EPS for 2021 is pegged in the range of $1.84-$1.98. The Zacks Consensus Estimate for the same is pegged at $1.86.
Wrapping Up
Merit Medical exited the fourth quarter of 2020 on a strong note. It saw overall revenue growth within its Cardiovascular unit. The CE mark for the Merit WRAPSODY Endoprosthesis Stent System and its commercialization in the European Union continue to buoy optimism. The recent FDA approval for the WRAPSODY Arterial Venous access Efficacy (WAVE) IDE trial is encouraging too.
Expansion in adjusted operating margin is a plus. Further, the company stands to benefit from the execution of its global growth and profitability plan. A robust pipeline of new products and other internally-developed products raise investor optimism on the stock. Despite COVID-19, the company witnessed robust demand for several of its critical care products, such as hemodynamic monitoring, peritoneal dialysis catheters and insertion tools apart from its infection control products.
However, we are concerned about the revenue decline at its Endoscopy segment. Contraction in gross margin is a concern as well. Also, stiff competition and higher consolidation in the healthcare industry are dampeners. Further, economic stagnation due to the coronavirus outbreak adds to the woes.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of two cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
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Merit Medical (MMSI) Q4 Earnings and Revenues Beat Estimates
Merit Medical Systems, Inc’s (MMSI - Free Report) fourth-quarter 2020 adjusted earnings per share (EPS) of 54 cents beat the Zacks Consensus Estimate of 43 cents by 25.6%. Moreover, the bottom line rose 35% from the year-ago quarter.
Further, for 2020, adjusted EPS came in at $1.65, beating the Zacks Consensus Estimate by 5.8%. The figure also improved 13% year over year.
Revenues in Detail
For the quarter, this Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues of $258 million, in line with year-ago figure. On constant-currency basis, the figure fell 1% year over year. Meanwhile, the top line surpassed the Zacks Consensus Estimate by 3%.
For 2020, revenues summed $963.9 million, down 3.1% year over year both on reported and currency-neutral basis. However, the topline beat the Zacks Consensus Estimate by 0.8%.
Segmental Details
The Cardiovascular unit reported fourth-quarter revenues of $250.1 million, up 0.3% year over year on 2% increase in Peripheral Intervention revenues to $95.1 million. Moreover, revenues from Custom Procedural Solutions rose 12.1% to $53.8 million. However, revenues from Cardiac Intervention fell 7.4% to $71.9 million. Also, OEM revenues contracted 4.2% to $29.2 million.
Revenues from the Endoscopy devices totaled $7.9 million, down 6.8% year over year.
Margins
In the quarter under review, gross profit totaled $111.2 million, down 0.4% on a year-over-year basis. Gross margin came in at 43.1% of net revenues, down 19 basis points (bps) year over year.
Adjusted operating profit totaled $16.1 million, up 21.2% year over year.
Adjusted operating margin in the quarter came in at 6.2%, indicating an expansion of 109 bps year over year.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
Financial Update
The company exited the fourth quarter with cash and cash equivalents of $56.9 million, up from $44.3 million at the end of the year- ago period.
2021 Guidance
Net revenues for 2021 are projected between $990 million and $1.01 billion, indicating an increase of 2.7-4.8% year over year. The Zacks Consensus Estimate for the same is pegged at $1.03 billion.
Adjusted EPS for 2021 is pegged in the range of $1.84-$1.98. The Zacks Consensus Estimate for the same is pegged at $1.86.
Wrapping Up
Merit Medical exited the fourth quarter of 2020 on a strong note. It saw overall revenue growth within its Cardiovascular unit. The CE mark for the Merit WRAPSODY Endoprosthesis Stent System and its commercialization in the European Union continue to buoy optimism. The recent FDA approval for the WRAPSODY Arterial Venous access Efficacy (WAVE) IDE trial is encouraging too.
Expansion in adjusted operating margin is a plus. Further, the company stands to benefit from the execution of its global growth and profitability plan. A robust pipeline of new products and other internally-developed products raise investor optimism on the stock. Despite COVID-19, the company witnessed robust demand for several of its critical care products, such as hemodynamic monitoring, peritoneal dialysis catheters and insertion tools apart from its infection control products.
However, we are concerned about the revenue decline at its Endoscopy segment. Contraction in gross margin is a concern as well. Also, stiff competition and higher consolidation in the healthcare industry are dampeners. Further, economic stagnation due to the coronavirus outbreak adds to the woes.
Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each presently carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of two cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>