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Jun 30, 2022

Merit Medical Q2 2022 Earnings Report

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.

Key Takeaways

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.

Total Revenue
$295M
Previous year: $280M
+5.2%
EPS
$0.73
Previous year: $0.62
+17.7%
GAAP Operating Margin
7.9%
Previous year: 3.2%
+146.9%
Non-GAAP Operating Margin
19.1%
Previous year: 16.3%
+17.2%
Gross Profit
$135M
Previous year: $124M
+8.8%
Cash and Equivalents
$63M
Previous year: $69.7M
-9.6%
Free Cash Flow
$31.5M
Previous year: $34.6M
-8.7%
Total Assets
$1.63B
Previous year: $1.64B
-0.7%

Merit Medical

Merit Medical

Merit Medical Revenue by Segment

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.

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income