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Market Overview

Earnings Preview for Merit Medical Systems


On Wednesday, February 24, Merit Medical Systems (NASDAQ:MMSI) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Merit Medical Systems modeled for quarterly EPS of $0.43 on revenue of $250.45 million. In the same quarter last year, Merit Medical Systems reported EPS of $0.4 on revenue of $257.92 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 7.5%. Sales would be down 2.9% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.20 0.06 0.26 0.34
EPS Actual 0.42 0.31 0.38 0.40
Revenue Estimate 216.31 M 192.67 M 233.23 M 252.31 M
Revenue Actual 243.97 M 218.37 M 243.53 M 257.92 M

Stock Performance

Shares of Merit Medical Systems were trading at $57.54 as of February 22. Over the last 52-week period, shares are up 49.77%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Merit Medical Systems is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings