Medical device company Merit Medical Systems (NASDAQ: MMSI) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Merit Medical Systems beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $339.8 million, up 7.8% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Merit Medical Systems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Merit Medical Systems’s revenue to grow 8.3% year on year to $351.5 million, slowing from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Merit Medical Systems has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Merit Medical Systems’s peers in the healthcare equipment and supplies segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Penumbra delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 3.1%, and Intuitive Surgical reported revenues up 25.2%, topping estimates by 6.5%. Penumbra traded up 12.1% following the results while Intuitive Surgical was down 4%.
Read our full analysis of Penumbra’s results here and Intuitive Surgical’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the healthcare equipment and supplies stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.3% on average over the last month. Merit Medical Systems is down 1.6% during the same time and is heading into earnings with an average analyst price target of $118.80 (compared to the current share price of $104.10).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
