Merit Medical Systems (NASDAQ:MMSI) Issues Quarterly Earnings Results

Merit Medical Systems (NASDAQ:MMSI) posted its quarterly earnings data on Thursday. The medical instruments supplier reported $1.12 EPS for the quarter, beating analysts’ consensus estimates of $1.04 by $0.08, FiscalAI reports. The company had revenue of $416.24 million during the quarter, compared to the consensus estimate of $410.56 million. Merit Medical Systems had a net margin of 9.22% and a return on equity of 13.75%. The company’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.92 EPS.

Here are the key takeaways from Merit Medical Systems’ conference call:

• Strong third-quarter performance: Revenue rose 8% to $416 million, including 9% organic constant-currency growth, while non-GAAP operating margin expanded 160 basis points to 21.3% and EPS increased 22% to $1.12. Free cash flow was nearly $53 million.
• Merit raised its 2026 outlook, now expecting 7.1%–7.6% organic constant-currency revenue growth, non-GAAP EPS of $4.33–$4.37, and a 21.2%–21.4% operating margin. Management said it remains on track to meet its three-year growth initiatives targets.
• Solo Pace acquisition expands the cardiac portfolio: Merit paid approximately $45 million for the remaining equity in the temporary pacing technology company, which serves the growing TAVR market; the deal is expected to be slightly accretive to 2027 earnings.
• Management cited ongoing execution and market risks, including competitive pressure on WRAPSODY, uncertainty surrounding China’s pricing and localization policies, elevated inventory, and lower gross margin from manufacturing variances, platinum costs, and freight. The company expects to address inventory and efficiency through its new chief operating officer’s initiatives.

Merit Medical Systems Stock Performance

MMSI traded up $1.18 on Thursday, hitting $93.39. 979,227 shares of the company’s stock were exchanged, compared to its average volume of 650,489. The company has a current ratio of 4.20, a quick ratio of 2.79 and a debt-to-equity ratio of 0.44. The stock has a fifty day moving average of $88.68 and a two-hundred day moving average of $77.12. The firm has a market cap of $5.58 billion, a PE ratio of 25.12, a P/E/G ratio of 2.30 and a beta of 0.51. Merit Medical Systems has a twelve month low of $59.74 and a twelve month high of $94.85.

Merit Medical Systems News Summary

Here are the key news stories impacting Merit Medical Systems this week:

• Positive Sentiment: Q3 results exceeded expectations. Revenue reached $416.2 million, above the $410.6 million consensus estimate. GAAP EPS was $0.70, up 51% year over year, while non-GAAP EPS was $1.12, topping the $1.04 analyst estimate. Merit Medical earnings report
• Positive Sentiment: Growth and profitability improved. Organic constant-currency revenue increased 9%, GAAP operating margin expanded to 14.1% from 11.1%, and non-GAAP operating margin rose to 21.3% from 19.7%. Year-to-date operating cash flow was $175.2 million and free cash flow was $129.5 million. Merit Medical third-quarter results and guidance
• Positive Sentiment: Full-year guidance was raised. The improved outlook signals management expects demand and operating performance to remain resilient, supporting the earnings-driven move higher. Merit Medical raises outlook
• Positive Sentiment: Cardiac portfolio expanded. Merit Medical acquired Solo Pace, whose temporary pacing technology is designed for patients undergoing treatment for aortic stenosis and is intended to strengthen the company’s transcatheter aortic valve replacement platform. Merit Medical acquires Solo Pace
• Neutral Sentiment: Freedom Capital initiated coverage with a Hold rating. The rating provides limited incremental support and suggests the firm views the stock’s valuation and outlook as broadly balanced. Freedom Capital coverage
• Negative Sentiment: Some insider selling may temper sentiment. The company’s chief operating officer sold 28,949 shares over the past six months, although another senior executive purchased 1,626 shares. These transactions are not directly tied to the quarterly results.

Wall Street Analysts Forecast Growth

MMSI has been the subject of several research analyst reports. BTIG Research reaffirmed a “buy” rating and set a $105.00 price target on shares of Merit Medical Systems in a research report on Tuesday, August 11th. Bank of America lifted their price objective on Merit Medical Systems from $92.00 to $97.00 and gave the company a “neutral” rating in a research note on Thursday, August 13th. Piper Sandler increased their target price on shares of Merit Medical Systems from $96.00 to $106.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Raymond James Financial reissued an “outperform” rating and issued a $100.00 target price on shares of Merit Medical Systems in a research note on Friday, July 31st. Finally, Zacks Research lowered Merit Medical Systems from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 19th. Eight investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $100.00.

Merit Medical Systems Company Profile

Merit Medical Systems, Inc is a medical device company that develops, manufactures and distributes disposable products used in interventional, diagnostic and therapeutic procedures. Its devices are designed for use by healthcare professionals in hospitals, outpatient facilities and other clinical settings.

The company’s product portfolio includes devices for vascular access, angiography, intervention, drainage, embolization, oncology and cardiac procedures. Merit also offers products used in peripheral intervention, spine procedures and other specialized areas of minimally invasive medicine, including kits, accessories and related procedural equipment.

Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves healthcare providers through a global commercial and manufacturing network.