The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Merit Medical Systems (NASDAQ: MMSI) and the rest of the medical devices & supplies - cardiology, neurology, vascular stocks fared in Q4.

The medical devices and supplies industry, particularly in the fields of cardiology, neurology, and vascular care, benefits from a business model that balances innovation with relatively predictable revenue streams. These companies focus on developing life-saving devices such as stents, pacemakers, neurostimulation implants, and vascular access tools, which address critical and often chronic conditions. The recurring need for these devices, coupled with growing global demand for advanced treatments, provides stability and opportunities for long-term growth. However, the industry faces hurdles such as high research and development costs, rigorous regulatory approval processes, and reliance on reimbursement from healthcare systems, which can exert downward pressure on pricing. Looking ahead, the industry is positioned to benefit from tailwinds such as aging populations (which tend to have higher rates of disease) and technological advancements like minimally invasive procedures and connected devices that improve patient monitoring and outcomes. Innovations in robotic-assisted surgery and AI-driven diagnostics are also expected to accelerate adoption and expand treatment capabilities. However, potential headwinds include pricing pressures stemming from value-based care models and continued complexity changing from navigating regulatory frameworks that may prioritize further lowering healthcare costs.

The 4 medical devices & supplies - cardiology, neurology, vascular stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% since the latest earnings results.

Merit Medical Systems (NASDAQ: MMSI)

Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ: MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.

Merit Medical Systems reported revenues of $355.2 million, up 9.4% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.

“We finished 2024 with strong momentum by delivering better-than-expected financial results in the fourth quarter, reflecting continued strong execution,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer.

Merit Medical Systems scored the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 4.7% since reporting and currently trades at $91.32.

Read our full report on Merit Medical Systems here, it’s free.

Best Q4: ICU Medical (NASDAQ: ICUI)

Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.

ICU Medical reported revenues of $621.6 million, up 5.7% year on year, outperforming analysts’ expectations by 6.2%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance slightly topping analysts’ expectations.

ICU Medical scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.7% since reporting. It currently trades at $142.58.

Is now the time to buy ICU Medical? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Artivion (NYSE: AORT)

Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.

Artivion reported revenues of $97.31 million, up 3.9% year on year, falling short of analysts’ expectations by 3.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ sales volume estimates.

Artivion delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14% since the results and currently trades at $23.99.

Read our full analysis of Artivion’s results here.

Penumbra (NYSE: PEN)

Founded in 2004 to address challenging medical conditions with significant unmet needs, Penumbra (NYSE: PEN) develops and manufactures innovative medical devices for treating vascular diseases and providing immersive healthcare rehabilitation solutions.

Penumbra reported revenues of $315.5 million, up 10.8% year on year. This result topped analysts’ expectations by 1.2%. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EPS estimates.

Penumbra achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 2.9% since reporting and currently trades at $278.61.

Read our full, actionable report on Penumbra here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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