Merit Medical Systems , Inc. (NASDAQ:MMSI) received a reiterated Buy rating and $108.00 price target from Needham on Thursday.
The medical device company reported second-quarter 2025 results that exceeded consensus expectations for both revenue and earnings per share. Merit Medical’s organic revenue growth improved to 6.7% year-over-year in the second quarter, up from 6.0% in the first quarter of 2025. The company maintains strong fundamentals with a healthy gross profit margin of 47.8% and a solid current ratio of 4.87x, indicating robust liquidity.
Management raised its full-year 2025 revenue guidance and increased its earnings per share outlook, citing a significantly reduced tariff impact of approximately $7 million compared to the previously expected $26 million, along with strong first-half performance. The company’s gross margin expanded by 170 basis points year-over-year, while operating margin improved by 110 basis points.
Merit Medical lowered its 2025 sales guidance for its WRAPSODY product to $2-4 million from $7-9 million due to delayed potential add-on outpatient reimbursement. The company plans to submit an application for a Transitional Pass-Through payment by September 1, 2025, with an expected response in December.
Free cash flow reached $70 million in the second quarter of 2025, compared to $58 million in the same period of 2024, demonstrating the company’s continued strong execution of its strategic initiatives.
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