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Merit Medical (MMSI) Q1 Earnings and Revenues Beat Estimates
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Merit Medical Systems, Inc’s (MMSI - Free Report) first-quarter 2021 adjusted earnings per share (EPS) of 52 cents beat the Zacks Consensus Estimate of 37 cents by 40.5%. Moreover, the bottom line rose 36.8% from the year-ago quarter.
Revenues in Detail
For the quarter, this Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues of $248.9 million, up 2.2% year over year. On constant-currency basis, the figure also inched up 0.6% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate by 7.7%.
Segmental Details
The Cardiovascular unit reported first-quarter revenues of $241 million, up 2.3% year over year on a 6.7% increase in Peripheral Intervention revenues to $92.9 million. However, revenues from Custom Procedural Solutions fell 4.6% to $45.4 million. Meanwhile, revenues from Cardiac Intervention rose 3% to $74.7 million. However, OEM revenues contracted 1.1% to $27.9 million.
Revenues from the Endoscopy devices totaled $7.9 million, down 0.9% year over year.
Margins
In the quarter under review, gross profit totaled $111.9 million, up 7.8% on a year-over-year basis. Gross margin came in at 44.9% of net revenues, reflecting an expansion of 234 basis points (bps) year over year.
Adjusted operating profit totaled $14.6 million, up 44.5% year over year.
Adjusted operating margin in the quarter came in at 5.9%, indicating an expansion of 171 bps year over year.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
The company exited the first quarter with cash and cash equivalents of $58.5 million, up from $56.9 million at the end of fourth-quarter 2020.
2021 Guidance
Net revenues for 2021 are now projected between $994 million and $1.01 billion, up from the prior guidance between $990 million and $1.01 billion. This indicates an increase of 3.1-5.2% year over year.The Zacks Consensus Estimate for the same is pegged at $996.9million.
Adjusted EPS for 2021 is reaffirmed in the range of $1.84-$1.98. The Zacks Consensus Estimate for the same stands at $1.88.
Wrapping Up
Merit Medical exited the first quarter of 2021 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 on the stock. The recent FDA approval for the WRAPSODY Arterial Venous access Efficacy (WAVE) IDE trial is encouraging too.
Expansion in both margins 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 raises 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. Also, stiff competition and higher consolidation in the healthcare industry are dampeners. Further, economic stagnation due to the coronavirus outbreak adds to the woes.
The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Owens & Minor’s first quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Merit Medical (MMSI) Q1 Earnings and Revenues Beat Estimates
Merit Medical Systems, Inc’s (MMSI - Free Report) first-quarter 2021 adjusted earnings per share (EPS) of 52 cents beat the Zacks Consensus Estimate of 37 cents by 40.5%. Moreover, the bottom line rose 36.8% from the year-ago quarter.
Revenues in Detail
For the quarter, this Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues of $248.9 million, up 2.2% year over year. On constant-currency basis, the figure also inched up 0.6% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate by 7.7%.
Segmental Details
The Cardiovascular unit reported first-quarter revenues of $241 million, up 2.3% year over year on a 6.7% increase in Peripheral Intervention revenues to $92.9 million. However, revenues from Custom Procedural Solutions fell 4.6% to $45.4 million. Meanwhile, revenues from Cardiac Intervention rose 3% to $74.7 million. However, OEM revenues contracted 1.1% to $27.9 million.
Revenues from the Endoscopy devices totaled $7.9 million, down 0.9% year over year.
Margins
In the quarter under review, gross profit totaled $111.9 million, up 7.8% on a year-over-year basis. Gross margin came in at 44.9% of net revenues, reflecting an expansion of 234 basis points (bps) year over year.
Adjusted operating profit totaled $14.6 million, up 44.5% year over year.
Adjusted operating margin in the quarter came in at 5.9%, indicating an expansion of 171 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 first quarter with cash and cash equivalents of $58.5 million, up from $56.9 million at the end of fourth-quarter 2020.
2021 Guidance
Net revenues for 2021 are now projected between $994 million and $1.01 billion, up from the prior guidance between $990 million and $1.01 billion. This indicates an increase of 3.1-5.2% year over year.The Zacks Consensus Estimate for the same is pegged at $996.9million.
Adjusted EPS for 2021 is reaffirmed in the range of $1.84-$1.98. The Zacks Consensus Estimate for the same stands at $1.88.
Wrapping Up
Merit Medical exited the first quarter of 2021 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 on the stock. The recent FDA approval for the WRAPSODY Arterial Venous access Efficacy (WAVE) IDE trial is encouraging too.
Expansion in both margins 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 raises 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. 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 same space are The Cooper Companies (COO - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLYSIRONA Inc. (XRAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Owens & Minor’s first quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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