Merit Medical Q2 Earnings Beat Estimates, Gross Margin Expands

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]