Merit Medical Systems (NASDAQ:MMSI) Announces Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Merit Medical exceeded third-quarter expectations: Revenue rose 8.4% year over year to $416.24 million, while non-GAAP EPS of $1.12 topped the $1.04 consensus estimate by $0.08. Organic constant-currency growth reached 9%, and operating margins expanded.
• The company raised its 2026 outlook, forecasting 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.
• Merit expanded its cardiac portfolio by acquiring Solo Pace for approximately $45 million, adding temporary pacing technology for the growing TAVR market; the deal is expected to be slightly accretive to 2027 earnings.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) announced its quarterly earnings data on Thursday. The medical instruments supplier reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.08, FiscalAI reports. The firm had revenue of $416.24 million during the quarter, compared to analyst estimates of $410.56 million. Merit Medical Systems had a return on equity of 13.75% and a net margin of 9.22%. Merit Medical Systems's quarterly revenue was up 8.4% on a year-over-year basis. During the same period in the previous year, the company earned $0.92 earnings per share.

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

Shares of NASDAQ:MMSI traded up $1.18 during trading on Thursday, reaching $93.39. 979,227 shares of the company's stock traded hands, compared to its average volume of 650,489. The stock has a market capitalization of $5.58 billion, a P/E ratio of 25.12, a price-to-earnings-growth ratio of 2.30 and a beta of 0.51. Merit Medical Systems has a 12 month low of $59.74 and a 12 month high of $94.85. The company has a 50 day moving average of $88.68 and a 200-day moving average of $77.12. The company has a debt-to-equity ratio of 0.44, a current ratio of 4.20 and a quick ratio of 2.79.

More Merit Medical Systems News

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

A number of research analysts have commented on MMSI shares. Weiss Ratings raised Merit Medical Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, October 12th. JPMorgan Chase & Co. lifted their target price on Merit Medical Systems from $77.00 to $95.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Zacks Research downgraded Merit Medical Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, October 19th. Bank of America upped their price target on Merit Medical Systems from $92.00 to $97.00 and gave the company a "neutral" rating in a research report on Thursday, August 13th. Finally, Piper Sandler upped their price target on Merit Medical Systems from $96.00 to $106.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Eight analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus 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.

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