Core Viewpoint - The last six months have been more challenging for Merit Medical than expected, with tariffs acting as a volatile but net-negative earnings driver [1] Group 1 - Merit Medical has faced unexpected challenges in the past six months [1] - Tariffs have contributed to earnings volatility, negatively impacting the company's financial performance [1]

Core Insights - The Cooper Companies (COO) is currently more attractive to value investors compared to Merit Medical (MMSI) based on various financial metrics and rankings [1][3][7] Valuation Metrics - COO has a forward P/E ratio of 18.10, while MMSI has a forward P/E of 24.27, indicating that COO is potentially undervalued [5] - The PEG ratio for COO is 1.79, compared to MMSI's PEG ratio of 2.39, suggesting that COO has a better balance between price and expected earnings growth [5] - COO's P/B ratio is 1.77, significantly lower than MMSI's P/B of 3.51, further supporting the argument that COO is more attractively valued [6] Rankings and Grades - COO holds a Zacks Rank of 2 (Buy), while MMSI has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for COO [3] - The Value grade for COO is B, whereas MMSI has a Value grade of C, reflecting the superior valuation metrics of COO [6]

Core Insights - Merit Medical Systems, Inc. has successfully enrolled the first patient in the WRAP North America registry, aimed at evaluating the WRAPSODY Cell-Impermeable Endoprosthesis (CIE) for patients on hemodialysis experiencing vascular access obstructions [1][2][5] Group 1: WRAP North America Registry - The WRAP North America registry is designed to enroll up to 250 patients in the US and Canada who are on hemodialysis and face obstructions in their vascular access [2][4] - The study will evaluate clinical outcomes over a three-year period for patients treated with the WRAPSODY CIE [2][4] - The first patient was enrolled by Dr. Omar Davis, highlighting the importance of this registry in assessing the device's effectiveness [2][3] Group 2: WRAPSODY CIE Device - The WRAPSODY CIE has shown superior performance in previous clinical trials, specifically the WRAPSODY Arteriovenous Access Efficacy (WAVE) pivotal trial [3][4] - The WAVE trial compared outcomes of patients treated with WRAPSODY CIE versus those treated with percutaneous transluminal angioplasty (PTA) [3] - The WRAPSODY CIE received premarket approval from the FDA on December 19, 2024, and was subsequently approved by Health Canada on April 30, 2025 [7] Group 3: Future Prospects - The WRAP North America registry aims to contribute to a growing portfolio of clinical evidence supporting the WRAPSODY CIE, potentially representing the largest cohort of patients treated with an implantable device for vascular access restoration [4][5] - A parallel WRAP Global registry is also being conducted to evaluate real-world outcomes, with an expected final enrollment of up to 500 patients outside North America by the end of 2025 [5][6]

Core Insights - Merit Medical Systems, Inc. has successfully enrolled the first patient in the WRAP North America registry, aimed at evaluating the WRAPSODY Cell-Impermeable Endoprosthesis (CIE) for patients on hemodialysis [1][5][8] Group 1: WRAP North America Registry - The WRAP North America registry is designed to enroll up to 250 patients in the US and Canada who are on hemodialysis and experience vascular access obstructions [2][4] - The registry will evaluate clinical outcomes over three years for patients treated with the WRAPSODY CIE [2][4] - The first patient was enrolled by Dr. Omar Davis at Bluff City Vascular, marking a significant milestone for the company [2][5] Group 2: WRAPSODY CIE Device - The WRAPSODY CIE aims to restore vascular access for hemodialysis patients facing obstructions, with promising results demonstrated in the previous WAVE pivotal trial [3][4] - The WAVE trial compared the WRAPSODY CIE with percutaneous transluminal angioplasty (PTA) and historical outcomes of patients treated with previous-generation covered stents [3] - The device received premarket approval from the FDA on December 19, 2024, and was approved by Health Canada on April 30, 2025 [7] Group 3: Clinical Evidence and Future Prospects - The WRAP North America registry is expected to contribute to a growing portfolio of clinical evidence supporting the WRAPSODY CIE [4] - A parallel WRAP Global registry is also being conducted to enroll up to 500 patients outside North America, with final enrollment expected by the end of 2025 [5] - The company emphasizes the importance of real-world effectiveness data to address critical questions regarding the device's broader impact in clinical practice [4][5]

Core Insights - Zacks Premium offers tools to enhance investor confidence and market engagement through daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated A, B, C, D, or F, with A being the highest score indicating a better chance of outperforming [3] Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score identifies stocks with upward or downward trends based on price changes and earnings estimates, aiding in timing purchases of high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 top-rated stocks available, making selection challenging for investors [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9][10] Company Spotlight: Merit Medical Systems, Inc. (MMSI) - Merit Medical, based in South Jordan, UT, specializes in peripheral and cardiac intervention products [11] - MMSI holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having increased by 2.6% over the past four weeks [11] - Six analysts have raised their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.25 to $3.60 per share, and an average earnings surprise of +12.9% [12]

Core Insights - Merit Medical Systems, Inc. has launched the Prelude Wave™ Hydrophilic Sheath Introducer with SnapFix™ Securement Technology, aimed at enhancing radial access procedures and potentially reducing arterial spasm and occlusion [1][2] Product Features - The Prelude Wave is part of Merit's Access portfolio, featuring a low-profile, hydrophilic design that offers best-in-class insertion and sheath retention [2] - The sheath is designed to reduce risks associated with radial artery spasm, which occurs in up to 20% of patients, and occlusion, which affects approximately 4.6% of patients [3][4] - The Prelude Wave provides twice the lubricity, resistance to buckling and kinking, and requires 40% less insertion force compared to leading competitors [6] Clinical Impact - The introduction of SnapFix technology offers twice the adhesive strength, enhancing the performance and ease of use for physicians [6] - The securement devices used for stabilizing hydrophilic sheaths have been linked to procedural inefficiencies in 30% of cases, indicating a significant need for improved solutions [5] Strategic Positioning - Merit Medical aims to support a radial-first approach by complementing existing products and addressing clinical challenges, as demonstrated by its acquisition of StatSeal®, a hemostatic sealant for radial procedures [8] - The company emphasizes its commitment to innovation in its Access portfolio, providing healthcare partners with data-driven treatment solutions [9]

Core Insights - Merit Medical Systems reported strong Q2 2025 results with GAAP revenue of $382.5 million, a 13.2% increase year-over-year, surpassing analyst expectations of $374.2 million [1][2] - Non-GAAP EPS reached $1.01, exceeding the estimate of $0.85, while GAAP EPS declined 11.6% to $0.54 [1][2] - The company experienced broad-based growth, particularly in the Cardiac Intervention and Endoscopy device lines, and raised its full-year revenue and non-GAAP earnings outlook [1][10] Financial Performance - Q2 2025 Non-GAAP EPS was $1.01, up 9.8% from $0.92 in Q2 2024 [2] - GAAP revenue was $382.5 million, compared to $338.0 million in Q2 2024, reflecting a 13.2% year-over-year increase [2] - Non-GAAP gross margin improved to 53.2%, and operating margin rose to 21.2% [2][7] Product Segment Performance - Cardiovascular devices generated $364.0 million, an 11.0% increase, with Cardiac Intervention products up 23.5% year-over-year [5] - The Endoscopy segment saw an 81.0% rise to $18.4 million, driven by acquisitions [6] Strategic Focus and Investments - The company emphasizes continuous product development, international market expansion, and regulatory compliance [3][4] - R&D investment for the quarter was $24.4 million, indicating a commitment to innovation [7] Acquisition and Compliance Costs - The quarter included significant acquisition and compliance expenses, with $21.5 million in amortization of acquired intangible assets and $1.6 million in MDR compliance costs [8] - Integration costs from recent acquisitions were recognized in non-GAAP adjustments, reflecting the company's growth strategy [8] Cash Flow and Capital Expenditures - Merit generated $89.1 million in free cash flow (non-GAAP) in the first half of 2025, an 8.1% increase year-over-year [9] - Capital expenditures rose to $34.8 million as the company invested in new products and expanded capacity [9] Future Outlook - Management raised FY2025 revenue guidance to $1.495–$1.507 billion and non-GAAP EPS to $3.52–$3.72 [10] - Cardiovascular segment revenue is projected to be $1.423–$1.434 billion, while the Endoscopy segment is expected to reach $72–$73 million [10]

Core Insights - Merit Medical Systems, Inc. (MMSI) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.01, reflecting a 9.8% increase year over year and surpassing the Zacks Consensus Estimate by 17.4% [1][9] - The company's total revenues reached $382.5 million, marking a 13.2% year-over-year increase [2][9] Revenue Details - Revenues increased by 12.5% year over year at constant exchange rates (CER), with organic revenues rising 6.7% [2] - U.S. sales were $227.1 million, up 16.7% year over year, while international sales reached $155.4 million, up 8.4% [3][4] Geographic Results - Asia-Pacific (APAC) revenues were $66.6 million, down 0.4% year over year, while revenues from Europe, the Middle East, and Africa were $72.6 million, up 16.5% [4] - Revenues from the Rest of World region were $16.2 million, up 13.9% year over year [5] Segmental Details - The Cardiovascular segment reported revenues of $364 million, up 11% year over year [6] - Within the Cardiovascular unit, Cardiac Intervention (CI) revenues rose 23.5% to $115.3 million, while Peripheral Intervention (PI) revenues increased 6.3% to $142.8 million [7][8] Margin Analysis - Gross profit increased 14.5% year over year to $184.5 million, with a gross margin of 48.2% [11] - Adjusted operating profit totaled $47 million, reflecting a 1.7% increase from the prior year, although the adjusted operating margin contracted to 12.3% [12] Financial Position - At the end of the second quarter, cash and cash equivalents were $341.8 million, down from $395.5 million at the end of the first quarter [13] - Total long-term debt was $731.8 million, slightly up from $730.7 million in the previous quarter [13] Guidance - The company revised its 2025 revenue outlook to between $1.495 billion and $1.507 billion, reflecting a year-over-year increase of 10.2-11.1% [14] - Adjusted EPS for 2025 is now projected to be in the range of $3.52-$3.72, an increase from the previous outlook [17] Strategic Developments - In May, the company acquired Biolife Delaware, L.L.C., enhancing its portfolio [20] - The approval of the Wrapsody Cell-Impermeable Endoprosthesis by Health Canada is expected to positively impact the company [20]

Core Insights - Merit Medical reported revenue of $382.46 million for the quarter ended June 2025, reflecting a 13.2% increase year-over-year, with EPS at $1.01 compared to $0.92 in the previous year [1] - The reported revenue met the Zacks Consensus Estimate, while the EPS exceeded the consensus estimate by 17.44% [1] Financial Performance Metrics - U.S. sales reached $227.08 million, surpassing the estimated $220.3 million, marking a 16.7% increase from the same quarter last year [4] - International sales amounted to $155.38 million, exceeding the estimated $151.04 million, representing an 8.4% year-over-year growth [4] - Revenue from Cardiovascular-Peripheral Intervention was $142.85 million, slightly below the estimated $144.62 million, with a year-over-year increase of 2.6% [4] - Cardiovascular-Cardiac Intervention revenue was $115.25 million, exceeding the estimated $104.93 million, showing a significant 22.8% increase year-over-year [4] - Endoscopy revenue reached $18.44 million, slightly below the estimated $18.66 million, but reflecting an impressive 81% increase from the previous year [4] - Cardiovascular-OEM revenue was $52.29 million, close to the estimated $52.65 million, with an 18.1% year-over-year increase [4] - Total Cardiovascular revenue was $364.03 million, surpassing the estimated $353.56 million, indicating an 11.1% increase year-over-year [4] - Revenue from Cardiovascular-Custom Procedural Solutions was $53.63 million, exceeding the estimated $51.05 million, with a year-over-year growth of 6.4% [4] Stock Performance - Merit Medical's shares have declined by 11.8% over the past month, contrasting with a 3.4% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported total revenue of $382.5 million, up 13% year over year on a GAAP basis and up 12.5% year over year on a constant currency basis, exceeding growth expectations [8][9] - Non-GAAP operating margin increased nearly 109 basis points year over year to 21.2%, representing the highest performance in the company's history as a public company [9] - Non-GAAP EPS grew by 10%, exceeding expectations, and free cash flow increased by 20% year over year to $70 million [9][32] Business Line Data and Key Metrics Changes - Cardiovascular segment sales grew by 10% and endoscopy segment sales increased by 81% [24] - Cardiac intervention product sales rose by 23%, with organic growth of approximately 10% [25] - Peripheral intervention products and custom procedure solutions saw sales increases of 6% and above expectations, respectively [25] Market Data and Key Metrics Changes - U.S. sales increased by 17% on a constant currency basis and 10% on an organic constant currency basis [28] - International sales grew by 7% year over year, with a 2% increase on an organic constant currency basis [28] - Sales in China decreased by 6%, attributed to the broader macro environment [29][80] Company Strategy and Development Direction - The company announced the acquisition of BioLife Delaware LLC for $120 million, aimed at enhancing its product offerings in hemostatic solutions [10][11] - A comprehensive marketing plan for the Rhapsody CIE was launched, focusing on expanding physician relationships and securing reimbursement coverage [15][16] - The company is targeting a premium pricing strategy for the Rhapsody CIE, emphasizing its unique treatment options and clinical benefits [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong execution and revenue growth despite a challenging global macro environment [10] - The company acknowledged a two-quarter delay in securing add-on reimbursement for the Rhapsody CIE in the outpatient setting but maintained long-term growth expectations [22][37] - Management emphasized the importance of their reimbursement strategy and ongoing engagement with CMS to secure necessary approvals [21][56] Other Important Information - The company updated its 2025 financial guidance, expecting GAAP net revenue growth of 10% to 11% and non-GAAP diluted EPS in the range of $3.52 to $3.72 [34][39] - The anticipated impact of tariffs on cost of goods was revised down to approximately $7 million, reflecting better-than-expected performance [38] Q&A Session Summary Question: Clarification on Rhapsody reimbursement process - Management clarified that they applied for a new technology APC assignment but did not receive it, and they plan to submit for TPT by September 1 [46][48] Question: Confidence in securing TPT - Management expressed high confidence in meeting TPT guidelines and emphasized the strength of their product data [55][60] Question: Sales performance in cardiac intervention - Management attributed the sales uplift to internal product development and the strategic acquisition of Cook Medical [100][106]