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Why Is Merit Medical (MMSI) Down 14% Since Last Earnings Report?
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It has been about a month since the last earnings report for Merit Medical (MMSI - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Merit Medical due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Merit Medical Systems, Inc. before we dive into how investors and analysts have reacted as of late.
Merit Medical Q4 Earnings & Revenues Beat Estimate, Margins Expand
Merit Medical reported fourth-quarter 2025 adjusted earnings per share of $1.04, up 12% from the year-ago quarter’s level. The bottom line surpassed the Zacks Consensus Estimate by 8.3%.
GAAP earnings per share for the quarter was 63cents, up 37% year over year.
For the full year, adjusted earnings per share improved 11% to $3.83. GAAP earnings per share was $2.13, up 5%.
MMSI’s Revenue Details
Revenues amounted to $393.9 million in the reported quarter, up 11% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 0.8%.
Total revenues at CER increased 10% year over year, whereas CER organic revenues increased 6.8%.
Full-year revenues totaled $1.52 billion, up 12% on a reported basis. Revenues were up 11% at CER and 7% at CER organic.
Merit Medical’s Geographic Results
The U.S. sales amounted to $238.2 million, which increased 11.6% year over year on a reported basis and 12% at CER.
International sales amounted to $155.7 million, up 9.9% year over year on a reported basis and 6.2% at CER.
Revenues from the APAC region were $62.7 million, up 3.1%year over year on a reported basis and 2.6% at CER.
Revenues from EMEA region totaled $77.4 million, up 18.8% and 12.3% on a reported basis and at CER, respectively.
Revenues from the ROW region amounted to $15.6 million, down 0.2% and 4.5% on a reported basis and at CER, respectively.
MMSI’s Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported fourth-quarter revenues of $373.9 million, up 11% on a reported basis and 9% at CER year over year.
The Cardiovascular segment includes four product categories — PI, CI, CPS and OEM.
PI product line revenues totaled $154.9 million, up 15% on a reported basis and 13% at CER year over year.
CI revenues of $117.2 million rose 23% on a reported basis and 21% at CER.
CPS revenues increased 5% on a reported basis and 4% at CER to $53.6 million.
OEM revenues declined 15% on a reported basis as well as at CER to $48.1 million.
Endoscopy devices’ revenues totaled $20.1 million, up 15% year over year on a reported basis as well as at CER.
Merit Medical’s Margin Analysis
In the quarter under review, Merit Medical’s gross profit increased 12.9% year over year to $195.3 million. The adjusted gross margin expanded 100 basis points (bps) to 54.5%.
Selling, general & administrative expenses increased 3.4% year over year to $114.8 million. Research and development expenses rose 5.3% year over year to $26.5 million.
Adjusted operating profit totaled $82.7 million, reflecting an 18.7% increase from the prior-year quarter’s level. The adjusted operating margin in the fourth quarter expanded 140 bps to 21%.
MMSI’s Financial Position
Merit Medical exited fourth-quarter 2025 with cash and cash equivalents of $446.4 million compared with $392.5 million at the end of the third quarter. Total long-term debt at the end of fourth-quarter 2025 was $734 million compared with $732.9 million in the previous quarter.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $297.4 million compared with $220.8 million a year ago.
Merit Medical’s Guidance
MMSI issued its outlook for 2026.
Net revenues for 2026 are projected to be between $1.61billion and $1.63 billion (reflecting an increase of 6-8% year over year on a reported basis). The Zacks Consensus Estimate is pegged at $1.60 billion.
Adjusted earnings per share for 2026 is projected to be in the range of $4.01-$4.15 (representing an increase of 5-8% year over year). The Zacks Consensus Estimate is pegged at $4.05.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.66% due to these changes.
VGM Scores
At this time, Merit Medical has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Merit Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Merit Medical (MMSI) Down 14% Since Last Earnings Report?
It has been about a month since the last earnings report for Merit Medical (MMSI - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Merit Medical due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Merit Medical Systems, Inc. before we dive into how investors and analysts have reacted as of late.
Merit Medical Q4 Earnings & Revenues Beat Estimate, Margins Expand
Merit Medical reported fourth-quarter 2025 adjusted earnings per share of $1.04, up 12% from the year-ago quarter’s level. The bottom line surpassed the Zacks Consensus Estimate by 8.3%.
GAAP earnings per share for the quarter was 63cents, up 37% year over year.
For the full year, adjusted earnings per share improved 11% to $3.83. GAAP earnings per share was $2.13, up 5%.
MMSI’s Revenue Details
Revenues amounted to $393.9 million in the reported quarter, up 11% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 0.8%.
Total revenues at CER increased 10% year over year, whereas CER organic revenues increased 6.8%.
Full-year revenues totaled $1.52 billion, up 12% on a reported basis. Revenues were up 11% at CER and 7% at CER organic.
Merit Medical’s Geographic Results
The U.S. sales amounted to $238.2 million, which increased 11.6% year over year on a reported basis and 12% at CER.
International sales amounted to $155.7 million, up 9.9% year over year on a reported basis and 6.2% at CER.
Revenues from the APAC region were $62.7 million, up 3.1%year over year on a reported basis and 2.6% at CER.
Revenues from EMEA region totaled $77.4 million, up 18.8% and 12.3% on a reported basis and at CER, respectively.
Revenues from the ROW region amounted to $15.6 million, down 0.2% and 4.5% on a reported basis and at CER, respectively.
MMSI’s Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported fourth-quarter revenues of $373.9 million, up 11% on a reported basis and 9% at CER year over year.
The Cardiovascular segment includes four product categories — PI, CI, CPS and OEM.
PI product line revenues totaled $154.9 million, up 15% on a reported basis and 13% at CER year over year.
CI revenues of $117.2 million rose 23% on a reported basis and 21% at CER.
CPS revenues increased 5% on a reported basis and 4% at CER to $53.6 million.
OEM revenues declined 15% on a reported basis as well as at CER to $48.1 million.
Endoscopy devices’ revenues totaled $20.1 million, up 15% year over year on a reported basis as well as at CER.
Merit Medical’s Margin Analysis
In the quarter under review, Merit Medical’s gross profit increased 12.9% year over year to $195.3 million. The adjusted gross margin expanded 100 basis points (bps) to 54.5%.
Selling, general & administrative expenses increased 3.4% year over year to $114.8 million. Research and development expenses rose 5.3% year over year to $26.5 million.
Adjusted operating profit totaled $82.7 million, reflecting an 18.7% increase from the prior-year quarter’s level. The adjusted operating margin in the fourth quarter expanded 140 bps to 21%.
MMSI’s Financial Position
Merit Medical exited fourth-quarter 2025 with cash and cash equivalents of $446.4 million compared with $392.5 million at the end of the third quarter. Total long-term debt at the end of fourth-quarter 2025 was $734 million compared with $732.9 million in the previous quarter.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $297.4 million compared with $220.8 million a year ago.
Merit Medical’s Guidance
MMSI issued its outlook for 2026.
Net revenues for 2026 are projected to be between $1.61billion and $1.63 billion (reflecting an increase of 6-8% year over year on a reported basis). The Zacks Consensus Estimate is pegged at $1.60 billion.
Adjusted earnings per share for 2026 is projected to be in the range of $4.01-$4.15 (representing an increase of 5-8% year over year). The Zacks Consensus Estimate is pegged at $4.05.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -5.66% due to these changes.
VGM Scores
At this time, Merit Medical has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Merit Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.