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Mar 31, 2021

Merit Medical Q1 2021 Earnings Report

Merit Medical's Q1 2021 results were reported, showing revenue increase and improved profitability.

Key Takeaways

Merit Medical reported a 2.2% increase in revenue to $248.9 million for Q1 2021. The company's GAAP EPS was $0.19, and non-GAAP EPS was $0.52. They also generated $29 million in free cash flow.

Reported revenue increased to $248.9 million, a 2.2% increase year-over-year.

Constant currency revenue, organic, increased by 0.6% compared to the prior year.

GAAP EPS was $0.19, compared to a GAAP loss per share of ($0.06) in the prior year.

Non-GAAP EPS was $0.52, compared to $0.38 in the prior year.

Total Revenue
$249M
Previous year: $244M
+2.2%
EPS
$0.52
Previous year: $0.38
+36.8%
GAAP Operating Margin
5.7%
Previous year: 0.6%
+850.0%
Non-GAAP Operating Margin
15.6%
Previous year: 12.7%
+22.8%
Gross Profit
$112M
Previous year: $104M
+7.8%
Cash and Equivalents
$58.5M
Previous year: $50.1M
+16.9%
Free Cash Flow
$29M
Previous year: $15M
+93.3%
Total Assets
$1.65B
Previous year: $1.75B
-5.6%

Merit Medical

Merit Medical

Merit Medical Revenue by Segment

Forward Guidance

Merit Medical updated net revenue expectations for the year ending December 31, 2021, expecting net revenue in the range of $994 million to $1,014 million, representing an increase of approximately 3.1% to 5.2% year over year.

Positive Outlook

  • Net revenue in the range of $994 million to $1,014 million, representing an increase of approximately 3.1% to 5.2% year over year.
  • The updated net revenue range assumes a benefit from the changes in foreign currency exchange rates in the range of approximately $8.0 million to $8.5 million.
  • Net revenue from the cardiovascular segment of between $963 million and $982 million, representing an increase of approximately 3.1% to 5.2% year-over-year.
  • Net revenue from the endoscopy segment of between $30.8 million and $31.9 million, representing an increase of approximately 4% to 7% year-over-year.
  • GAAP net income in the range of $47.3 million to $55.9 million, or $0.83 to $0.98 per diluted share.

Challenges Ahead

  • Guidance is subject to risks and uncertainties identified in this release and Merit’s filings with the SEC.
  • Potential inability to successfully manage growth through acquisitions generally.
  • Negative changes in economic and industry conditions in the United States or other countries.
  • Expenditures relating to research, development, testing and regulatory approval or clearance of Merit’s products and risks that such products may not be developed successfully or approved for commercial use.
  • Governmental scrutiny and regulation of the medical device industry, including governmental inquiries, investigations and proceedings involving Merit.

Revenue & Expenses

Visualization of income flow from segment revenue to net income