Yahoo Finance Merit Medical Systems, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
As you might know, Merit Medical Systems, Inc. (NASDAQ:MMSI) just kicked off its latest first-quarter results with some very strong numbers. Merit Medical Systems beat earnings, with revenues hitting US$324m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Merit Medical Systems after the latest results.
View our latest analysis for Merit Medical Systems
Taking into account the latest results, the most recent consensus for Merit Medical Systems from ten analysts is for revenues of US$1.32b in 2024. If met, it would imply a satisfactory 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 27% to US$2.23. Before this earnings report, the analysts had been forecasting revenues of US$1.32b and earnings per share (EPS) of US$2.19 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$92.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Merit Medical Systems, with the most bullish analyst valuing it at US$107 and the most bearish at US$80.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Merit Medical Systems' revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2024 being well below the historical 6.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Merit Medical Systems is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Merit Medical Systems' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Merit Medical Systems' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Merit Medical Systems going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Merit Medical Systems that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
