Merit Medical (MMSI) Down 0.6% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Merit Medical (MMSI). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Merit Medical due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Merit Medical Q4 Earnings Top Estimates, Gross Margin Up

Merit Medical delivered adjusted earnings per share of 81 cents in the fourth quarter of 2023, up 2.5% year over year. The figure also surpassed the Zacks Consensus Estimate by 5.2%.

The adjustments include expenses related to the amortization of intangibles, and Medical Device Regulation expenses, among others.

GAAP earnings per share for the quarter was 47 cents, down 18.9% year over year.

Full-year 2023 adjusted earnings per share was $3.01, down 11.5% compared with that at the end of the comparable 2022 period. The figure topped the Zacks Consensus Estimate by 1.3%.

Revenues in Detail

Merit Medical registered revenues of $$324.5 million in the fourth quarter, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 1.7%.

Total revenues at CER inched up 10.3% year over year, whereas CER, organic revenues increased 8.3% year over year.

Per management, the better-than-expected CER revenue growth in the fourth quarter was driven by strong organic growth, reflecting particular strength in PI, CPS and OEM product categories, and relatively balanced contributions from both the U.S. and international markets.

Full-year 2023 revenues were $1.26 billion, reflecting a 9.2% uptick from the comparable 2022 period. The figure topped the Zacks Consensus Estimate by 0.8%.

Geographic Results

The U.S. sales increased 13% on CER basis and 9% on a CER, organic basis.

International sales increased 7% on a CER, organic basis, driven primarily by 7% growth in Europe, the Middle East, and Africa region, 30% growth in the rest of the world region and 4% growth in the Asia-Pacific region.

Segmental Details

Merit Medical operates through two segments — Cardiovascular and Endoscopy.

The Cardiovascular unit reported fourth-quarter revenues of $315.2 million, up 10.3% on a reported basis and 10.1 % at CER year over year.

The Cardiovascular segment includes the following product categories: PI, CI, CPS and OEM.

PI product line revenues were $134.1 million, up 19.4% on a reported basis and 19% at CER year over year.