Merit Medical Systems Earnings: Here’s Why the Stock is Falling Now

Merit Medical Systems, Inc. (NASDAQ:MMSI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.62%.

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Merit Medical Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 41.18% to $0.10 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 8.66% to $103.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Merit Medical Systems, Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $108.28 million.

Quoting Management: “First quarter results were a function of the initiation of the medical device tax, new expenses associated with our recent acquisition of Thomas Medical, as well as the expenses associated with our new facilities,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “In order to reduce expenses and improve profitability, we have undertaken a critical look at our costs starting with SG&A. Discretionary spending, such as community support, trade shows and company participation in benefits, has been substantially reduced. We are also reprioritizing our R&D projects.”

Key Stats (on next page)…

Revenue increased 1.63% from $102.23 million in the previous quarter. EPS decreased 33.33% from $0.15 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.22 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.89 to a profit of $0.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)