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Jun 30, 2024

Merit Medical Q2 2024 Earnings Report

Merit Medical's financial performance exceeded expectations in Q2 2024, driven by strong momentum and strategic initiatives.

Key Takeaways

Merit Medical reported a 5.6% increase in revenue to $338.0 million for Q2 2024. The company's GAAP EPS rose by 75.7% to $0.61, while non-GAAP EPS increased by 16.8% to $0.92. Merit Medical also raised its full-year guidance.

Reported revenue increased by 5.6% year-over-year, reaching $338.0 million.

GAAP operating margin improved to 13.6%, compared to 9.0% in the prior year period.

Non-GAAP operating margin increased to 20.1%, compared to 19.1% in the prior year period.

GAAP EPS grew by 75.7% to $0.61, and non-GAAP EPS increased by 16.8% to $0.92.

Total Revenue
$338M
Previous year: $320M
+5.5%
EPS
$0.92
Previous year: $0.81
+13.6%
GAAP Operating Margin
13.6%
Previous year: 9%
+51.1%
Non-GAAP Operating Margin
20.1%
Previous year: 19.9%
+1.0%
Gross Profit
$160M
Previous year: $153M
+4.9%
Cash and Equivalents
$639M
Previous year: $72.1M
+786.1%
Free Cash Flow
$57.9M
Previous year: $11.5M
+402.6%
Total Assets
$2.37B
Previous year: $1.84B
+29.1%

Merit Medical

Merit Medical

Merit Medical Revenue by Segment

Forward Guidance

Merit Medical updated its full-year 2024 financial guidance, reflecting stronger-than-expected organic results and the acquisition of EndoGastric Solutions. The company projects net sales between $1.335 billion and $1.345 billion and non-GAAP earnings per share between $3.27 and $3.35.

Positive Outlook

  • Net Sales: $1,335 - $1,345 million (6% - 7% Y/Y growth)
  • Cardiovascular Segment: $1,281 - $1,289 million (5% - 6% Y/Y growth)
  • Endoscopy Segment: $54 - $56 million (45% - 52% Y/Y growth)
  • Non-GAAP Earnings Per Share: $3.27 - $3.35 (15% - 17% Y/Y growth)
  • The updated guidance reflects the EndoGastric Solutions acquisition.

Challenges Ahead

  • Guidance is subject to risks and uncertainties.
  • Material acquisitions, non-recurring transactions, or other factors could impact results.
  • Merit is unable to predict the financial impact of various items which could impact Merit’s future financial results
  • Merit is not, without unreasonable effort, able to reliably predict the impact of these items and Merit believes inclusion of a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance.
  • The 2024 financial guidance is excluding material acquisitions, non-recurring transactions or other factors beyond Merit’s current expectations

Revenue & Expenses

Visualization of income flow from segment revenue to net income