Merit Medical (MMSI) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.50%. A quarter ago, it was expected that this maker of disposable medical devices would post earnings of $0.88 per share when it actually produced earnings of $0.92, delivering a surprise of 4.55%. Over the last f ...

Exhibit 99.1 1 | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------| | | | | | | Contacts: | | | | PR/Media Inquiries: Sarah Comstock Merit Medical +1-801-432-2864 sarah.comstock@merit.com | Investor Inquiries: Mike Piccinino, CFA, IRC Westwicke – ICR +1-443-213-0509 mike.piccinino@westwicke.com | FOR IMMEDIATE REL ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Merit Medical (MMSI) . This company, which is in the Zacks Medical - Dental Supplies industry, shows potential for another earnings beat.This maker of disposable medical devices has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise f ...

Core Points - Merit Medical Systems, Inc. will release its financial results for Q3 2024 on October 30, 2024, after market close [1] - An investor conference call is scheduled for the same day at 5:00 p.m. Eastern Time [1] Company Overview - Merit Medical Systems, Inc. was founded in 1987 and specializes in the development, manufacture, and distribution of proprietary medical devices for interventional, diagnostic, and therapeutic procedures [3] - The company focuses on key areas such as cardiology, radiology, oncology, critical care, and endoscopy [3] - Merit has a global presence with a sales force and clinical support team of over 700 individuals and employs approximately 7,200 people worldwide [3]

Core Viewpoint - Merit Medical Systems, Inc. (MMSI) has shown strong performance with a 24.7% increase in share price year-to-date, contrasting with a 1.6% decline in the industry and a 20.8% rise in the S&P 500 composite [1] Company Overview - Merit Medical specializes in peripheral and cardiac intervention products aimed at treating cardiac conditions, operating through two segments: Cardiovascular and Endoscopy [2] - The Cardiovascular segment includes a wide range of medical devices for vascular access, while the Endoscopy segment focuses on gastroenterology and pulmonary products [3] Growth Catalysts - The company has enhanced its product offerings through an asset purchase agreement with EndoGastric Solutions, adding the EsophyX Z+ device to its endoscopy portfolio, which is expected to strengthen its market position [5] - Recent product launches include the basixSKY Inflation Device and the Siege Vascular Plug, contributing to the company's growth [6] - For the three months ending June 30, 2024, the Cardiovascular segment accounted for 96.9% of total sales, with total revenue growth of 5.6% reported [7] Financial Performance - The company has outperformed Zacks Consensus Estimates for earnings and revenues, driven by strong performance in both domestic and international markets [8] - The Zacks Consensus Estimate projects a 10% and 11.6% year-over-year improvement in earnings for 2024 and 2025, respectively, with revenues expected to rise to $1.34 billion and $1.44 billion [11]

Core Viewpoint - Merit Medical Systems, Inc. (MMSI) is positioned for growth due to a strong product portfolio and solid second-quarter 2024 performance, despite facing challenges from healthcare industry consolidation and forex volatility [1][2]. Financial Performance - The company has experienced a 26.6% stock price increase over the past six months, outperforming the industry, which declined by 7.8%, while the S&P 500 rose by 9% [2]. - Merit Medical has a market capitalization of $5.62 billion and projects a 12% growth rate over the next five years, with an average earnings surprise of 8.39% over the past four quarters [2]. Q2 Results - The second-quarter 2024 results showed year-over-year growth in both revenue and earnings, with revenue increases across segments and product categories, particularly in the Cardiovascular unit [3]. - The company reported margin expansion, indicating improved profitability [3]. Product Portfolio - Merit Medical has gained momentum through new product launches and acquisitions, including a recent agreement to purchase Cook Medical's lead management portfolio [4]. - Recent product releases include the basixSKY Inflation Device and the Siege Vascular Plug, along with the Bearing nsPVA Express Prefilled Syringe [5]. Research and Development - R&D remains a critical component of Merit Medical's growth strategy, with R&D expenses rising by 0.7% year-over-year to $20.3 million [6]. - The company is focused on innovation, leading to new product introductions and enhancements in existing products [6]. Industry Challenges - The healthcare industry is experiencing higher consolidation, leading to increased pressure on pricing as larger companies seek to reduce costs and eliminate competition [7][8]. - Forex volatility poses risks to Merit Medical's international operations, potentially impacting margins and financial results if foreign currencies decline against the U.S. dollar [9]. Estimate Trends - There is a positive estimate revision trend for 2024, with the Zacks Consensus Estimate for EPS increasing by 0.6% to $3.33 [10]. - The consensus estimate for Q3 2024 revenues is $334.7 million, reflecting a 6.2% increase from the previous year, with EPS expected to improve by 6.7% [10].

Core Viewpoint - Merit Medical Systems, Inc. (MMSI) has signed a definitive asset purchase agreement to acquire Cook Medical's lead management portfolio for approximately $210 million, aiming to enhance its offerings in cardiac intervention solutions [1][5][6]. Company Summary - The acquisition is expected to close in the fourth quarter of 2024, pending customary closing conditions [2]. - Following the announcement, MMSI's stock rose nearly 0.2% to $98.71, reflecting positive market sentiment [3]. - MMSI currently has a market capitalization of $5.75 billion and a return on equity of 15.3%, outperforming the industry average of 10.5% [4]. - The lead management business from Cook Medical generated approximately $37 million in revenues over the last 12 months, with significant sales across various regions [7]. Financial Projections - The acquired assets are projected to contribute revenues of $4 million to $6 million from the closing date through the end of 2024, but may dilute MMSI's previously forecasted adjusted operating margin, net income, and earnings per share during that period [8][9]. - The acquisition is expected to be accretive to adjusted gross and operating margins in 2025 and to adjusted net income and EPS from 2026 onward [9]. - MMSI has updated its revenue guidance for 2024 to a range of $1.339 billion to $1.351 billion, reflecting the impact of the acquisition [13][14]. Industry Context - The cardiac intervention market represents an annual addressable opportunity of over $900 million in the U.S., EMEA, and APAC regions, positioning MMSI favorably within this market [11]. - The deal is anticipated to enhance MMSI's strategy for continuous growth through portfolio expansion, particularly in the high-margin electrophysiology and cardiac rhythm management sectors [10][12].

Acquisition and Financial Impact - Merit Medical signed an agreement to purchase Cook Medical's lead management portfolio for approximately $210 million, expected to close in Q4 2024[1]. - The acquisition is projected to add approximately $40 million in annual revenue starting in fiscal year 2025, enhancing Merit's electrophysiology and CRM business[1]. - The acquisition is expected to be modestly dilutive to Merit's full-year 2024 non-GAAP profitability due to partial-year contribution[4]. - The acquisition is projected to be accretive to non-GAAP gross margin and operating margin in the first full year post-close[5]. - Merit anticipates the acquisition will enhance its position in the cardiac intervention market, contributing to over $100 million in combined annualized revenue[3]. - The financial profile of the acquisition is considered attractive, aligning with Merit's goal of sustainable growth and strong free cash flow generation[4]. Financial Guidance and Performance - The updated full-year 2024 financial guidance reflects net sales of $1.339 - $1.351 billion, a year-over-year increase of 6.5% - 7.5%[6]. - Non-GAAP earnings per share guidance for 2024 is projected at $3.25 - $3.34, representing a year-over-year increase of 14% - 17%[6]. - Cook Medical's lead management business generated approximately $37 million in revenue for the twelve months ending December 31, 2023, with sales distribution of 41% in the US, 42% in EMEA, 11% in APAC, and 6% in ROW[5]. Market Opportunities and Challenges - The cardiac intervention market represents an annual addressable opportunity of over $900 million in the US, EMEA, and APAC regions[3]. - The company is aware of the risks associated with market acceptance of new products and competition in the medical device industry[23]. - Merit Medical's financial results are subject to various uncertainties, including supply chain disruptions and changes in economic conditions[23]. Compliance and Regulatory Considerations - The company is actively pursuing new product development and regulatory approvals, particularly under the European Union Medical Device Regulation[23]. - Merit Medical faces potential challenges related to compliance with healthcare regulations and the impact of governmental scrutiny on its operations[23]. - The company is committed to maintaining high standards of quality and ethics in its medical device offerings[21]. Strategic Focus and Relationships - Merit Medical's growth strategy includes managing acquisitions effectively and integrating new technologies[23]. - The company emphasizes the importance of its relationships with suppliers and distributors in various jurisdictions[23]. - The company anticipates achieving projected sales and operating margins post-acquisition, although there are risks associated with integration and market conditions[23]. - Merit Medical's financial estimates and forward-looking statements are subject to change and should not be relied upon as definitive predictions[22].

Core Viewpoint - Merit Medical Systems, Inc. has signed a definitive asset purchase agreement to acquire Cook Medical's lead management portfolio for approximately $210 million, which is expected to enhance its electrophysiology and cardiac rhythm management (CRM) business, contributing an estimated $40 million in annual revenue starting in fiscal year 2025 [1][3][4]. Group 1: Acquisition Details - The acquisition is projected to close in the fourth quarter of 2024, pending regulatory approvals and customary closing conditions [1]. - Cook Medical's lead management business has a 34-year operating history and offers a comprehensive product portfolio for lead management procedures [2]. - Merit plans to fund the acquisition through cash on hand and borrowings from its long-term credit facility [1]. Group 2: Financial Impact - The assets from Cook Medical are expected to generate approximately $37 million in revenue for the twelve months ending December 31, 2023, with geographical sales distribution of 41% in the US, 42% in EMEA, 11% in APAC, and 6% in ROW [4]. - The acquisition is anticipated to contribute between $4 million to $6 million in revenue from the projected closing date through the end of 2024, although it may dilute Merit's non-GAAP operating margin and net income for that year [4][5]. - For the fiscal year 2024, Merit has updated its financial guidance to reflect the acquisition's impact, projecting net sales between $1.339 billion and $1.351 billion, representing a year-over-year growth of 6.5% to 7.5% [8][9]. Group 3: Strategic Positioning - The acquisition aligns with Merit's Continued Growth Initiatives, enhancing its offerings for cardiac intervention patients and positioning the company to capture a larger share of the estimated $900 million annual addressable market in the US, EMEA, and APAC regions [3]. - The addition of Cook's lead management business is expected to result in over $100 million in combined annualized revenue from electrophysiology and CRM, strengthening Merit's market position [3].

Company Overview - Merit Medical Systems (MMSI) is headquartered in South Jordan, UT, and specializes in peripheral and cardiac intervention products for treating cardiac conditions related to interventional cardiology and electrophysiology [2] - The company operates through two segments: Cardiovascular and Endoscopy, with the Cardiovascular segment including various medical devices for vascular access [2][3] Financial Performance - MMSI's shares have increased by 26.4% year-to-date, contrasting with a 1% decline in the industry and a 16.3% rise in the S&P 500 Composite [1] - For the three months ending June 30, 2024, cardiovascular sales accounted for 96.9% of total sales, reflecting a 5.3% increase from the same period in 2023 [5] - The company reported total revenue growth of 5.6% on a reported basis and 6.6% at constant exchange rates (CER), driven primarily by the Cardiovascular segment [5][6] Growth Catalysts - The company executed an asset purchase agreement with EndoGastric Solutions, expanding its endoscopy portfolio with the EsophyX Z+ device for chronic gastroesophageal reflux disease [3] - In May, MMSI launched the basixSKY Inflation Device and received FDA clearance for the Siege Vascular Plug, indicating ongoing innovation and product development [4] Market Position - The company has demonstrated robust performance both domestically and internationally, with an expansion in operating margin that is expected to positively impact stock prices [6][7] - However, MMSI faces strong competition in interventional cardiology, diagnostics, and radiology markets, where larger companies may have more resources and market presence [8][9]