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Here's Why Investors Should Bet on Merit Medical (MMSI) Now
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Merit Medical Systems, Inc. (MMSI - Free Report) is well poised for growth backed by solid segmental performances, strategic expansion and strong prospects in the HeRO product line.
Moreover, the company has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.2%. Notably, this trend of consecutive beats underlines its operating efficiency.
In a year’s time, this Zacks Rank #2 (Buy) company has outperformed its industry. The stock has gained almost 25% against the industry’s 1.9% decline.
What’s Favoring the Stock?
Strong Q4 Results
Merit Medical exited the fourth quarter of 2018 on a solid note, with considerable expansion in adjusted gross margin. Furthermore, upbeat guidance for 2019 highlights the bright prospects of the stock.
In fourth-quarter 2018, the company reported adjusted earnings per share (EPS) of 48 cents. The bottom line improved 45.5% from the year-ago quarter’s tally. This Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues totaled $233.2 million, up 22.2% from the year-ago quarter’s tally. On a comparable, constant-currency basis, the metric increased 13.1% year over year.
New Products
Recently, management at Merit Medical introduced products like EmboCube Embolization Gelatin, the basixTAU Inflation Device, the Prelude Prestige Splittable Sheath Introducer, the Prelude Ideal Sheath Introducer and the PreludeSYNC Radial Hemostasis Device. These, in turn, are likely to expand the company’s customer base.
The PreludeSYNC is a wristband with a distal radio SYNC platform. The Prelude Ideal platform has been gaining traction in the markets of Australia and Canada as of the fourth quarter of 2018.
International Exposure
In the fourth quarter of 2018, Merit Medical received a number of orders from the Middle East for their flagship products. Per management, the company foresees solid opportunities there in the quarters ahead.
Additionally, Merit Medical eyes a global pipeline for Europe, Asia and South-east Asia.
Which Way Are Estimates Headed?
The Zacks Consensus Estimate for first-quarter 2019 earnings is pegged at 38 cents, reflecting a year-over-year increase of 21%. The same for revenues is pinned at $231.7 million, indicating an increase of 14.1% year over year.
For 2019, the Zacks Consensus Estimate for revenues stands at $1.01 billion, reflecting a rise of 14.3% year over year. The same for earnings mirrors growth of 19.3% year over year.
ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.
IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.
Wright Medical Group has a long-term expected earnings growth rate of 11.3%.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Here's Why Investors Should Bet on Merit Medical (MMSI) Now
Merit Medical Systems, Inc. (MMSI - Free Report) is well poised for growth backed by solid segmental performances, strategic expansion and strong prospects in the HeRO product line.
Moreover, the company has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.2%. Notably, this trend of consecutive beats underlines its operating efficiency.
In a year’s time, this Zacks Rank #2 (Buy) company has outperformed its industry. The stock has gained almost 25% against the industry’s 1.9% decline.
What’s Favoring the Stock?
Strong Q4 Results
Merit Medical exited the fourth quarter of 2018 on a solid note, with considerable expansion in adjusted gross margin. Furthermore, upbeat guidance for 2019 highlights the bright prospects of the stock.
In fourth-quarter 2018, the company reported adjusted earnings per share (EPS) of 48 cents. The bottom line improved 45.5% from the year-ago quarter’s tally. This Utah-based provider of peripheral and cardiac intervention products reported worldwide revenues totaled $233.2 million, up 22.2% from the year-ago quarter’s tally. On a comparable, constant-currency basis, the metric increased 13.1% year over year.
New Products
Recently, management at Merit Medical introduced products like EmboCube Embolization Gelatin, the basixTAU Inflation Device, the Prelude Prestige Splittable Sheath Introducer, the Prelude Ideal Sheath Introducer and the PreludeSYNC Radial Hemostasis Device. These, in turn, are likely to expand the company’s customer base.
The PreludeSYNC is a wristband with a distal radio SYNC platform. The Prelude Ideal platform has been gaining traction in the markets of Australia and Canada as of the fourth quarter of 2018.
International Exposure
In the fourth quarter of 2018, Merit Medical received a number of orders from the Middle East for their flagship products. Per management, the company foresees solid opportunities there in the quarters ahead.
Additionally, Merit Medical eyes a global pipeline for Europe, Asia and South-east Asia.
Which Way Are Estimates Headed?
The Zacks Consensus Estimate for first-quarter 2019 earnings is pegged at 38 cents, reflecting a year-over-year increase of 21%. The same for revenues is pinned at $231.7 million, indicating an increase of 14.1% year over year.
For 2019, the Zacks Consensus Estimate for revenues stands at $1.01 billion, reflecting a rise of 14.3% year over year. The same for earnings mirrors growth of 19.3% year over year.
Merit Medical Systems, Inc. Price and Consensus
Merit Medical Systems, Inc. Price and Consensus | Merit Medical Systems, Inc. Quote
Want More From the Industry?
Other top-ranked stocks from the MedTech space are ABIOMED, Inc. , IDEXX Laboratories, Inc. (IDXX - Free Report) and Wright Medical Group N.V. , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.
IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.
Wright Medical Group has a long-term expected earnings growth rate of 11.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>