Merit Medical Systems (Nasdaq:MMSI) shares are up today — a day after it reported Q3 results that topped the consensus forecast.
The South Jordan, Utah-based disposable medical device maker announced yesterday evening that it posted profits of $15.3 million in the quarter. That amounts to 27¢ per share.
Merit registered sales of $287.2 million for the three months ended Sept. 30, 2022. Its figures include a 27.6% bottom-line improvement on sales growth of 7.5%.
Adjusted to exclude one-time items, Merit posted earnings per share of 64¢. That’s 11¢ ahead of expectations on Wall Street. Analysts projected sales of $272 million.
Mike Matson at Neeham & Co. said Merit Medical enjoyed broad-based growth that drove a solid Q3 despite inflation and currency headwinds. He reiterated his Buy rating: “We believe that MMSI continues to execute on its strategy despite macro headwinds and expect it to continue to drive strong revenue growth, margin improvement and free cash flow.”
More about Merit Medical’s Q3 report
The company’s largest growth came from its OEM business, which reported 21.5% year-over-year growth. Endoscopy devices grew by 12.4%, and peripheral intervention went up 9.5% from this time last year.
“We delivered better-than-expected revenue results for the third quarter of 2022, posting 10.5% constant currency sales growth fueled by solid execution from our team and more favorable than anticipated demand trends from customers in the U.S., EMEA and APAC regions.” said Fred P. Lampropoulos, Merit chair and CEO. “We also delivered better-than-expected profitability in the quarter, with approximately 23% growth year-over-year in both non-GAAP net income and non-GAAP earnings per share, driven by the combination of our strong revenue results and continued benefits from our multi-year strategic initiatives related to the foundations for growth program.”
Merit said it now expects to log adjusted EPS of between $2.55 and $2.61 for the year. That marks a large rise from its previous projection of between $2.42 and $2.52. It updated its sales guidance for between $1.145 billion and $1.151 billion. It previously projected between $1.123 billion and $1.135 billion.
MMSI shares were up more than 5% to $64.03 apiece this morning. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up more than 1%.
This story originally ran on Oct. 26, 2022. Updated Oct. 27 with next-day stock price and analyst comment.
