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Merit Medical Q2 Earnings Beat Estimates, Gross Margin Expands
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Key Takeaways
MMSI reported second-quarter 2025 adjusted EPS of $1.01, surpassing the Zacks Consensus Estimate.
Merit Medical's revenues reached $382.5 million, led by U.S. and Cardiovascular segment performance.
MMSI raised 2025 revenue and EPS guidance across both Cardiovascular and Endoscopy units.
Merit Medical Systems, Inc. (MMSI - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.01, up 9.8% from the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 17.4%.
GAAP EPS for the quarter was 54 cents, down 11.5% year over year.
MMSI’s Revenue Details
Revenues grossed $382.5 million in the reported quarter, up 13.2% year over year on a reported basis.
Total revenues at constant exchange rate (CER) increased 12.5% year over year, whereas CER, organic revenues increased 6.7%.
Merit Medical’s Geographic Results
The U.S. sales amounted to $227.1 million, which increased 16.7% year over year on a reported basis and 16.6% at CER. This figure compares to our second-quarter projection of $220.6 million.
International sales amounted to $155.4 million, up 8.4% year over year on a reported basis and 6.9% at CER. This figure compares to our second-quarter projection of $150.5 million.
Revenues from the Asia-Pacific (APAC) region were $66.6 million, down 0.4% year over year on a reported basis and 0.6% at CER. This figure compares to our second-quarter projection of $67 million.
Revenues from Europe, the Middle East and Africa region were $72.6 million, up 16.5% and 12.1% year over year on a reported basis and CER, respectively. This figure compares to our second-quarter projection of $68.9 million.
Revenues from the Rest of World region were $16.2 million, up 13.9% and 19.3% year over year on a reported basis and CER, respectively. This figure compares to our second-quarter projection of $14.5 million.
MMSI’s Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported second-quarter revenues of $364 million, up 11% on a reported basis and 10.4% at CER year over year. This figure compares to our segmental projection of $353.2 million for the second quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $142.8 million, up 6.3% on a reported basis and 5.8% at CER year over year. This compares to our projection of $148.7 million.
CI revenues of $115.3 million rose 23.5% on a reported basis and 22.6% at CER year over year. This compares to our projection of $103.4 million.
CPS revenues increased 6.9% on a reported basis and 5.7% at CER year over year to $53.6 million. This compares to our projection of $50.9 million.
OEM revenues improved 4.6% on a reported basis and 4.3% at CER year over year to $52.3 million. This compares to our projection of $50.2 million.
Endoscopy devices’ revenues totaled $18.4 million, up 80.9% year over year on a reported basis and 80.8% at CER. This figure compares to our segmental projection of $17.9 million for the second quarter.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Merit Medical’s gross profit increased 14.5% year over year to $184.5 million. The gross margin expanded 57 basis points (bps) to 48.2%. We had projected a 47.9% gross margin for the second quarter.
Selling, general & administrative expenses increased 19.6% year over year to $ 113.1 million. Research and development expenses rose 20.3% year over year to $24.4 million. Adjusted operating expenses of $137.5 million rose 19.7% year over year.
Adjusted operating profit totaled $47 million, reflecting a 1.7% increase from the prior-year quarter. The adjusted operating margin in the second quarter contracted 139 bps to 12.3%.
MMSI’s Financial Position
Merit Medical exited second-quarter 2025 with cash and cash equivalents of $341.8 million compared with $395.5 million at the first-quarter end. Total long-term debt at the end of second-quarter 2025 was $731.8 million compared with $730.7 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2025 was $123.9 million compared with $104.7 million a year ago.
Merit Medical’s Guidance
MMSI has revised its outlook for 2025.
Net revenues for 2025 are now projected to be between $1.495 billion and $1.507 billion (reflecting an increase of 10.2-11.1% on a reported basis over the comparable reported figures of 2024), up from the prior outlook of $1.480 billion and $1.501 billion (reflecting an increase of 9.1-10.7% on a reported basis over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $1.48 billion.
The revenues are now expected to be up 9.7-10.6% at CER in 2025, up from the prior outlook of 9.5-11% over the comparable figures of 2024.
Net revenues from the Cardiovascular segment are now expected to be in the range of $1.423 billion-$1.434 billion (representing an increase of 9-10% over the comparable reported figures of 2024), up from the previous outlook of $1.407 billion-$1.426 billion (representing an increase of 8-10% over the comparable reported figures of 2024).
The Endoscopy segment’s net revenues are now projected to be between $72 million and $73 million (representing an increase of 32- 34% over the comparable reported figures of 2024), down from the earlier guidance of $73 million and $75 million (representing an increase of 34- 37% over the comparable reported figures of 2024).
Adjusted EPS for 2025 is now projected to be in the range of $3.52-$3.72 (representing an increase of 2- 8% over the comparable reported figures of 2024), up from the prior outlook of $3.28-$3.41 (representing a decrease of 5-1% over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $3.36.
Our Take on MMSI
Merit Medical exited the second quarter of 2025 with better-than-expected earnings. The year-over-year uptick in the top line was impressive. The company saw revenue growth in both its segments and product categories within its Cardiovascular unit. Robust revenue growth in the United States and outside was impressive. The expansion of gross margin bodes well for the stock.
In May, Merit Medical acquired Biolife Delaware, L.L.C. (“Biolife”) in a merger transaction through which Biolife has become its wholly-owned subsidiary. The same month, the company announced that the Wrapsody Cell-Impermeable Endoprosthesis received regulatory approval from Health Canada. These look promising for the stock.
However, lower revenues in the APAC region during the quarter were disappointing. The contraction of the adjusted operating margin is concerning as well.
Merit Medical’s Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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Merit Medical Q2 Earnings Beat Estimates, Gross Margin Expands
Key Takeaways
Merit Medical Systems, Inc. (MMSI - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.01, up 9.8% from the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 17.4%.
GAAP EPS for the quarter was 54 cents, down 11.5% year over year.
MMSI’s Revenue Details
Revenues grossed $382.5 million in the reported quarter, up 13.2% year over year on a reported basis.
Total revenues at constant exchange rate (CER) increased 12.5% year over year, whereas CER, organic revenues increased 6.7%.
Merit Medical’s Geographic Results
The U.S. sales amounted to $227.1 million, which increased 16.7% year over year on a reported basis and 16.6% at CER. This figure compares to our second-quarter projection of $220.6 million.
International sales amounted to $155.4 million, up 8.4% year over year on a reported basis and 6.9% at CER. This figure compares to our second-quarter projection of $150.5 million.
Revenues from the Asia-Pacific (APAC) region were $66.6 million, down 0.4% year over year on a reported basis and 0.6% at CER. This figure compares to our second-quarter projection of $67 million.
Revenues from Europe, the Middle East and Africa region were $72.6 million, up 16.5% and 12.1% year over year on a reported basis and CER, respectively. This figure compares to our second-quarter projection of $68.9 million.
Revenues from the Rest of World region were $16.2 million, up 13.9% and 19.3% year over year on a reported basis and CER, respectively. This figure compares to our second-quarter projection of $14.5 million.
MMSI’s Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported second-quarter revenues of $364 million, up 11% on a reported basis and 10.4% at CER year over year. This figure compares to our segmental projection of $353.2 million for the second quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $142.8 million, up 6.3% on a reported basis and 5.8% at CER year over year. This compares to our projection of $148.7 million.
CI revenues of $115.3 million rose 23.5% on a reported basis and 22.6% at CER year over year. This compares to our projection of $103.4 million.
CPS revenues increased 6.9% on a reported basis and 5.7% at CER year over year to $53.6 million. This compares to our projection of $50.9 million.
OEM revenues improved 4.6% on a reported basis and 4.3% at CER year over year to $52.3 million. This compares to our projection of $50.2 million.
Endoscopy devices’ revenues totaled $18.4 million, up 80.9% year over year on a reported basis and 80.8% at CER. This figure compares to our segmental projection of $17.9 million for the second quarter.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
Merit Medical’s Margin Analysis
In the quarter under review, Merit Medical’s gross profit increased 14.5% year over year to $184.5 million. The gross margin expanded 57 basis points (bps) to 48.2%. We had projected a 47.9% gross margin for the second quarter.
Selling, general & administrative expenses increased 19.6% year over year to $ 113.1 million. Research and development expenses rose 20.3% year over year to $24.4 million. Adjusted operating expenses of $137.5 million rose 19.7% year over year.
Adjusted operating profit totaled $47 million, reflecting a 1.7% increase from the prior-year quarter. The adjusted operating margin in the second quarter contracted 139 bps to 12.3%.
MMSI’s Financial Position
Merit Medical exited second-quarter 2025 with cash and cash equivalents of $341.8 million compared with $395.5 million at the first-quarter end. Total long-term debt at the end of second-quarter 2025 was $731.8 million compared with $730.7 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2025 was $123.9 million compared with $104.7 million a year ago.
Merit Medical’s Guidance
MMSI has revised its outlook for 2025.
Net revenues for 2025 are now projected to be between $1.495 billion and $1.507 billion (reflecting an increase of 10.2-11.1% on a reported basis over the comparable reported figures of 2024), up from the prior outlook of $1.480 billion and $1.501 billion (reflecting an increase of 9.1-10.7% on a reported basis over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $1.48 billion.
The revenues are now expected to be up 9.7-10.6% at CER in 2025, up from the prior outlook of 9.5-11% over the comparable figures of 2024.
Net revenues from the Cardiovascular segment are now expected to be in the range of $1.423 billion-$1.434 billion (representing an increase of 9-10% over the comparable reported figures of 2024), up from the previous outlook of $1.407 billion-$1.426 billion (representing an increase of 8-10% over the comparable reported figures of 2024).
The Endoscopy segment’s net revenues are now projected to be between $72 million and $73 million (representing an increase of 32- 34% over the comparable reported figures of 2024), down from the earlier guidance of $73 million and $75 million (representing an increase of 34- 37% over the comparable reported figures of 2024).
Adjusted EPS for 2025 is now projected to be in the range of $3.52-$3.72 (representing an increase of 2- 8% over the comparable reported figures of 2024), up from the prior outlook of $3.28-$3.41 (representing a decrease of 5-1% over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $3.36.
Our Take on MMSI
Merit Medical exited the second quarter of 2025 with better-than-expected earnings. The year-over-year uptick in the top line was impressive. The company saw revenue growth in both its segments and product categories within its Cardiovascular unit. Robust revenue growth in the United States and outside was impressive. The expansion of gross margin bodes well for the stock.
In May, Merit Medical acquired Biolife Delaware, L.L.C. (“Biolife”) in a merger transaction through which Biolife has become its wholly-owned subsidiary. The same month, the company announced that the Wrapsody Cell-Impermeable Endoprosthesis received regulatory approval from Health Canada. These look promising for the stock.
However, lower revenues in the APAC region during the quarter were disappointing. The contraction of the adjusted operating margin is concerning as well.
Merit Medical’s Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.