NASDAQ$MMSI

Merit Medical Systems Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Merit Medical's revenue increased, driven by solid execution and favorable demand trends, resulting in better-than-expected profitability with year-over-year growth in non-GAAP net income and EPS.

Merit Medical reported revenue of $295.0 million for Q2 2022, a 5.2% increase compared to Q2 2021. The company's constant currency revenue, organic, increased by 7.4%. GAAP EPS was $0.27, and non-GAAP EPS was $0.73. The company delivered better-than-expected revenue and profitability, with a record non-GAAP operating margin of 19.1%.

  • Reported revenue increased by 5.2% to $295.0 million compared to Q2 2021.
  • Constant currency revenue, organic, increased by 7.4% compared to Q2 2021.
  • GAAP operating margin was 7.9%, compared to 3.2% in Q2 2021.
  • Non-GAAP operating margin was 19.1%, compared to 16.3% in Q2 2021.

Headline financials

Total Revenue

$295M

Previous: $280M+5.2%
EPS (adj)

$0.73

Previous: $0.62+17.7%
GAAP Operating Margin

7.9%

Previous: 3.2%+146.9%
Non-GAAP Operating Margin

19.1%

Previous: 16.3%+17.2%
Capital Expenditures

-$16.8M

Previous: -$12.8M-30.8%
Free Cash Flow

-$1.47M

Previous: -$7.9M+81.5%
Net Income

$15.3M

Previous: $4.92M+211.2%
Operating Income

$23.3M

Previous: $8.9M+161.5%
Gross Profit

$135M

Previous: $124M+8.8%
Cash & Equivalents

$63M

Previous: $69.7M-9.6%
Total Assets

$1.63B

Previous: $1.64B-0.7%
Stock-Based Comp

$4.45M

Previous: $3.14M+41.9%

Revenue & EPS history

Merit Medical · Revenue · Quarterly

$295M

Q2 2022+5.2%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Merit Medical · $8.31M total across 1 segment · Q2 2022

  • Endoscopy
    $8.31M+3.4%

Forward guidance

Merit Medical updated its 2022 financial guidance and now expects net revenue in the range of $1.123 billion to $1.135 billion, GAAP net income in the range of $62.4 million to $68.3 million, and non-GAAP net income in the range of $139.6 million to $145.5 million.

Tailwinds

  • Net revenue in the range of $1.123 billion to $1.135 billion, representing an increase of approximately 5% to 6% year-over-year.
  • Net revenue from Merit’s cardiovascular segment of between $1.093 billion and $1.102 billion, representing an increase of approximately 5% to 6% year-over-year.
  • Net revenue from Merit’s endoscopy segment of between $30.0 million and $34.0 million, representing a range of a 5% decline to an 8% increase year-over-year.
  • GAAP net income in the range of $62.4 million to $68.3 million, or $1.08 to $1.18 per diluted share.
  • Non-GAAP net income in the range of $139.6 million to $145.5 million, or $2.42 to $2.52 per diluted share.

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 2022

Historical avgQ2 2022

-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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