NASDAQ$MMSI

Merit Medical Systems Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported revenue increased and earnings per share exceeded expectations.

Merit Medical reported a strong Q2 2021 with revenue of $280.3 million, a 28.4% increase compared to Q2 2020. GAAP EPS was $0.09, and non-GAAP EPS was $0.62. The company updated its 2021 guidance due to the better-than-expected results and a more favorable outlook for growth in the second half of 2021.

  • Revenue for Q2 2021 was $280.3 million, up 28.4% compared to Q2 2020.
  • Constant currency revenue, organic, increased by 25.5% compared to Q2 2020.
  • GAAP EPS was $0.09, compared to a GAAP loss per share of ($0.34) in Q2 2020.
  • Non-GAAP EPS was $0.62, compared to $0.31 in Q2 2020.

Headline financials

Total Revenue

$280M

Previous: $218M+28.4%
EPS (adj)

$0.62

Previous: $0.31+100.0%
GAAP Operating Margin

3.2%

Previous: -8.7%+136.8%
Non-GAAP Operating Margin

16.3%

Previous: 11.2%+45.5%
Capital Expenditures

-$12.8M

Previous: -$25.8M+50.3%
Free Cash Flow

-$7.9M

Previous: -$44.9M+82.4%
Net Income

$4.92M

Previous: -$19.1M+125.8%
Operating Income

$8.9M

Previous: -$19M+146.8%
Gross Profit

$124M

Previous: $84.2M+47.4%
Cash & Equivalents

$69.7M

Previous: $49.7M+40.2%
Total Assets

$1.64B

Previous: $1.72B-4.3%
Stock-Based Comp

$3.14M

Previous: $3.43M-8.5%

Revenue & EPS history

Merit Medical · Revenue · Quarterly

$280M

Q2 2021+28.4%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Merit Medical · $8.03M total across 1 segment · Q2 2021

  • Endoscopy
    $8.03M+29.7%

Forward guidance

Merit Medical updated its net revenue expectations for the year ending December 31, 2021. They now forecast net sales of $1,060 - $1,070 million and non-GAAP earnings per share of $2.07 - $2.22.

Tailwinds

  • Net revenue from the cardiovascular segment is expected to be between $1,028 million and $1,038 million.
  • This represents an increase of approximately 10% to 11% year-over-year.
  • Net revenue from the endoscopy segment is expected to be between $32.5 million and $32.7 million.
  • This represents an increase of approximately 9.6% to 10.2% year-over-year.
  • The updated net revenue range continues to assume a benefit from changes in foreign currency exchange rates in the range of approximately $10.5 million to $11.5 million.

Headwinds

  • GAAP Net Income is expected to be between $43.2 - $51.8 million
  • Earnings Per Share is expected to be between $0.75 - $0.91
  • The financial guidance is subject to risks and uncertainties.
  • Material acquisitions, non-recurring transactions or other factors beyond Merit’s control could affect future results.
  • The prior guidance assumed growth of approximately 3.1% to 5.2% year-over-year.

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 Q2 2021

Historical avgQ2 2021

-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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