Merit Medical Systems (MMSI) Tops Q4 EPS by 3c, Revenues Beat; Offers FY19 EPS/Revenue Mid-Point Guidance Above Consensus
Merit Medical Systems (NASDAQ: MMSI) reported Q4 EPS of $0.48, $0.03 better than the analyst estimate of $0.45. Revenue for the quarter came in at $233.2 million versus the consensus estimate of $230.39 million.
- Q4 2018 worldwide revenue of $233.2 million, up 22.2% as reported over Q4 2017
- Q4 2018 core revenue on a comparable, constant currency basis* up 13.1% over Q4 2017
- Q4 2018 GAAP EPS was $0.16, compared to $0.13 in Q4 2017
- Q4 2018 non-GAAP EPS* was $0.48, compared to $0.33 in Q4 2017
“2018 was an important and very positive year for the company and included the closing of the Becton Dickinson deal, the acquisitions of Cianna Medical and Vascular Insights, and the execution of our global growth and profitability plan,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “Integration of these new businesses and sales of our core products continue to drive growth to the point where we are confident forecasting an expansion of our 2019 core revenue growth to a range of 8 - 10%.”
“We believe our forecasted growth will be facilitated by recently introduced products such as the EmboCube™ Embolization Gelatin, the basixTAU™ Inflation Device, the Prelude Prestige™ Splittable Sheath Introducer, the Prelude Ideal™ Sheath Introducer, the PreludeSYNC™ Radial Hemostasis Device, as well as the momentum of our legacy products,” Lampropoulos continued. “As we look forward, we are also comfortable adding a forecast for 2020, which we currently believe will be in the range of 8 - 10% core revenuegrowth, an addition of 100 - 150 basis points to gross margin, and net income improvement of approximately 14 - 19%. Please note that we believe this will be in addition to our 2019 range of 45.6 - 46.5% (GAAP) and 50.6 - 51.3% gross margin projection (non-GAAP).”
“Recently we opened a new distribution center in Reading, England in an effort to hedge against potential Brexit disruption, as well as a direct sales and distribution center in Johannesburg, South Africa,” Lampropoulos said. “We believe the ability to provide essentially same-day service to our customers in those regions will enhance customer confidence and increase our growth prospects.”
“Additionally, our new product pipeline is full,” Lampropoulos continued. “We expect to introduce 10 - 15 new products this year that will continue to support our overall business strategy. Our business measurements of top-line improvement, discipline of the SG&A and R&D expenses, and bottom-line improvement continue to support our business thesis. Finally, the healthcare market continues to consolidate, and we intend to continue to pursue opportunities that fit our overall strategy and financial metrics.”
GUIDANCE:
Merit Medical Systems sees FY2019 EPS of $1.97-$2.08, versus the consensus of $1.97. Merit Medical Systems sees FY2019 revenue of $1.011-1.03 billion, versus the consensus of $1.01 billion.
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