NASDAQ$MMSI

Merit Medical Systems Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported an increase in revenue and improved profitability in the first quarter.

Merit Medical reported revenue of $323.5 million for Q1 2024, an 8.7% increase compared to Q1 2023. The company's GAAP EPS increased to $0.48, up 35.5% from $0.36 in the prior year, and non-GAAP EPS increased to $0.77, up 18.7% from $0.64 in the prior year.

  • Revenue increased by 8.7% to $323.5 million compared to Q1 2023.
  • Constant currency revenue increased by 9.3% compared to Q1 2023.
  • GAAP operating margin was 11.1%, compared to 8.9% in Q1 2023.
  • GAAP EPS increased to $0.48, a 35.5% increase compared to $0.36 in Q1 2023.

Headline financials

Total Revenue

$324M

Previous: $298M+8.7%
EPS

$0.48

Previous: $0.64-25.0%
GAAP Operating Margin

11.1%

Previous: 8.9%+24.7%
Non-GAAP Operating Margin

17.0%

Previous: 16.1%+5.6%
Capital Expenditures

-$11.7M

Previous: -$12.8M+8.6%
Free Cash Flow

$16.6M

Previous: $7.92M+109.1%
Net Income

$28.2M

Previous: $20.7M+36.4%
Operating Income

$35.9M

Previous: $26.4M+36.2%
Gross Profit

$152M

Previous: $138M+9.7%
Cash & Equivalents

$582M

Previous: $57.9M+904.3%
Total Assets

$2.33B

Previous: $1.68B+38.1%
R&D Expense

$21.5M

No prior period
Stock-Based Comp

$5.23M

Previous: $3.97M+31.9%

Revenue & EPS history

Merit Medical · Revenue · Quarterly

$324M

Q1 2024+8.7%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Merit Medical · $9.15M total across 1 segment · Q3 2023

  • Endoscopy
    $9.15M+11.2%

Forward guidance

Merit reaffirmed its fiscal year 2024 financial guidance, expecting net sales between $1.312 and $1.325 billion, cardiovascular segment sales between $1.272 and $1.285 billion, endoscopy segment sales between $39.7 and $40.1 million, and non-GAAP earnings per share between $3.28 and $3.35.

Tailwinds

  • Net Sales: $1.312 - $1.325 billion (4% - 5% Y/Y increase)
  • Cardiovascular Segment: $1.272 - $1.285 billion (4% - 5% Y/Y increase)
  • Endoscopy Segment: $39.7 - $40.1 million (8% - 9% Y/Y increase)
  • Non-GAAP Earnings Per Share: $3.28 - $3.35 (9% - 11% Y/Y increase)
  • 2024 Net Sales Guidance - % Change from Prior Year (Constant Currency) Low: 4.8%, High: 5.9%

Headwinds

  • Merit does not provide guidance for GAAP reported financial measures (other than revenue)
  • Merit is unable to predict with reasonable certainty the financial impact of items such as expenses related to acquisitions or other extraordinary transactions
  • Merit is unable to predict non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets
  • Merit is unable to predict certain severance expenses, performance-based stock compensation expenses, corporate transformation expenses
  • Merit is unable to predict expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.8%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+16.5%

Q3 2014

Best reaction

-31.4%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.2%-6.8%-2.8%
Q4 2025-3.8%-7.2%-16.6%
Q3 2025+5.1%+4.9%+4.3%
Q1 2025-0.1%-0.2%+0.7%
Q4 2024-1.5%+1.0%+1.9%
Q3 2024+2.9%+3.3%+8.3%
Q2 2024+4.0%+5.0%+13.4%
Q1 2024+2.1%+5.2%+7.8%
Q4 2023-5.3%-4.9%-5.9%
Q3 2023+7.7%+7.3%+12.9%
Q2 2023-9.6%-8.3%-16.4%
Q1 2023+4.7%+5.1%+4.3%
Q4 2022+2.8%+1.3%+3.7%
Q3 2022+7.0%+14.6%+19.6%
Q2 2022+6.0%+10.6%+10.0%
Q1 2022-3.7%-4.7%-5.2%
Q4 2021+8.4%+9.3%+5.0%
Q3 2021-1.8%-5.1%-3.5%
Q2 2021+7.6%+3.9%+10.1%
Q1 2021-0.2%+1.4%-5.3%
Q4 2020-1.8%-0.4%+1.9%
Q3 2020+5.2%+1.3%+11.7%
Q2 2020+4.3%-1.9%+11.6%
Q1 2020+9.0%+6.5%+21.4%
Q4 2019+0.4%-9.5%-17.0%
Q3 2019-31.4%-15.5%-7.0%
Q2 2019-24.7%-26.2%-37.2%
Q1 2019-1.9%-4.7%-9.4%
Q4 2018-4.3%-2.1%+1.6%
Q3 2018-4.1%-5.3%-3.5%
Q2 2018+2.8%-3.1%+3.3%
Q1 2018+2.8%+7.5%+18.7%
Q4 2017-2.1%-5.1%-3.3%
Q3 2017-9.7%-11.0%+4.6%
Q2 2017+4.8%+5.5%+4.6%
Q1 2017+8.2%+8.2%+11.6%
Q4 2016+5.9%+4.8%+0.0%
Q3 2016-5.0%-5.0%+5.2%
Q2 2016+6.1%+6.7%+6.5%
Q1 2016+2.5%
Q4 2015-2.8%
Q3 2015-27.3%
Q2 2015+10.7%
Q1 2015+9.5%
Q4 2014+7.7%
Q3 2014+16.5%
Q2 2014-14.4%
Q1 2014-5.4%
Q4 2013+1.2%
Q3 2013+15.4%
Q2 2013+7.6%
Q1 2013-13.9%
Q4 2012-14.7%
Q3 2012-2.8%
Q2 2012-0.5%
Q1 2011-0.7%
Q4 2011-0.7%
Q1 2012+1.1%
Q1 2010-1.6%
Q4 2009-1.6%
Q3 2010-1.1%
Q3 2011-1.1%
Q2 2011+1.6%
Q2 2010+1.6%
Q4 2010+1.6%

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