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Merit Medical Stock Gains Following Solid Preliminary Q4 Revenues

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Merit Medical Systems, Inc. (MMSI - Free Report) announced preliminary revenues for 2024 on Monday. Following the robust preliminary results, the company’s shares gained nearly 3.9% till yesterday’s closing.

The company is scheduled to release fourth-quarter results on Feb. 25.

Per the preliminary report, full-year 2024 total revenues are estimated to be between $1.355 billion and $1.357 billion, up 7.7-7.9% from the comparable 2023 period. The Zacks Consensus Estimate of $1.35 billion.

Per the preliminary report, full-year 2024 total revenues at constant currency are estimated to be up 8.4-8.6% from the comparable 2023 period.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

MMSI’s Guidance for 2025

Merit Medical plans to issue its full-year 2025 guidance along with its fourth-quarter 2024 results announcement.

A Brief Q4 Analysis of Merit Medical

In November 2024, Merit Medical completed the acquisition of Cook Medical’s lead management portfolio. Per management, the acquisition is expected to strengthen its fast-growing, high-margin cardiac rhythm management/electrophysiology (CRM/EP) business and enhance MMSI’s position in the global cardiac intervention market.

With the announcement of third-quarter 2024 results in October, Merit Medical’s management had issued its updated financial outlook for the full year. Management expected its full year results to be boosted by the acquisition of Cook Medical’s lead management portfolio.

During the third quarter, Merit Medical had completed the acquisition of certain assets from EndoGastric Solutions, Inc., which included the EsophyX Z+, a device intended for the treatment of chronic gastroesophageal reflux disease.

On the third quarter of 2024 earnings call, Merit Medical’s management had commented that the acquisition of Cook Medical’s lead management portfolio will enhance its position in the cardiac intervention market, particularly in Europe, which is strategically attractive. Management estimated this transaction to represent an annual addressable opportunity of more than $900 million in the United States, Europe, the Middle East, Africa and Asia-Pacific regions. Specifically, management anticipated that beginning in 2025, the addition of the lead management business will position Merit Medical to represent more than $100 million in combined annualized CRM/EP revenues, serving the global cardiac intervention market. This looks promising for the stock.

Merit Medical’s progress with the U.S. WRAPSODY program in recent months is also promising. In September, it announced positive six-month findings from the randomized arteriovenous or AV fistula arm of its WRAPSODY WAVE pivotal trial. The company has also made considerable progress in its U.S. regulatory and reimbursement strategies, and in developing its post-approval commercial strategy for WRAPSODY.

Per Merit Medical’s management, the company is focused on ensuring it is ready to enter the U.S. market following premarket approval. It has completed a thorough evaluation of the U.S. market opportunity and is currently developing a comprehensive U.S. commercial strategy. This raises our optimism about the stock.

The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.

MMSI’s Price Performance

Shares of the company have lost 0.9% between Oct. 1 and Dec. 31, 2024, against the industry’s 0.8% rise and the S&P 500’s gain of 3.7%.

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Merit Medical’s Zacks Rank & Other Key Picks

Currently, MMSI carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are Cardinal Health, Inc. (CAH - Free Report) , Cencora, Inc. (COR - Free Report) and Labcorp Holdings Inc. (LH - Free Report) .

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health’s shares have gained 7.2% compared with the industry’s 0.8% growth between Oct. 1 and Dec. 31, 2024.

Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.9%.

Cencora has gained 0.2% against the industry’s 12.7% decline between Oct. 1 and Dec. 31, 2024.

Labcorp, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 8.4%. LH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.9%.

Labcorp’s shares have rallied 4.6% compared with the industry’s 0.8% growth between Oct. 1 and Dec. 31, 2024.

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