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Merit Medical Systems, Inc. MMSI reported third-quarter 2025 adjusted earnings per share (EPS) of 92 cents, up 6.9% from the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 12.2%.
GAAP EPS for the quarter was 46 cents, down 4.2% year over year.
Revenues grossed $384.2 million in the reported quarter, up 13% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 3.5%.
Total revenues at constant exchange rate (CER) increased 12.5% year over year, whereas CER, organic revenues increased 7.8%.
The U.S. sales amounted to $230.6 million, which increased 11.7% year over year on a reported basis and 12.1% at CER. This figure compares to our third-quarter projection of $221.1 million.
International sales amounted to $153.6 million, up 15.2% year over year on a reported basis and 13.1% at CER. This figure compares to our third-quarter projection of $148.3 million.
Revenues from the Asia-Pacific region were $64.9 million, up 7.4% year over year on a reported basis and 7.7% at CER. This figure compares to our third-quarter projection of $62.5 million.
Revenues from Europe, the Middle East and Africa region were $71.5 million, up 22.3% and 17.5% year over year on a reported basis and CER, respectively. This figure compares to our third-quarter projection of $67 million.
Revenues from the Rest of World region were $17.2 million, up 18.5% and 17.8% year over year on a reported basis and CER, respectively. This figure compares to our third-quarter projection of $18.8 million.
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported third-quarter revenues of $366.4 million, up 13.5% on a reported basis and 12.9% at CER year over year. This figure compares to our segmental projection of $350.7 million for the third quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $144.8 million, up 8.8% on a reported basis and 8.3% at CER year over year. This compares to our projection of $147.5 million.
CI revenues of $116.7 million rose 29.3% on a reported basis and 28.5% at CER year over year. This compares to our projection of $106 million.
CPS revenues increased 7.3% on a reported basis and 6.4% at CER year over year to $54.1 million. This compares to our projection of $51 million.
OEM revenues improved 3.6% on a reported basis and 3.3% at CER year over year to $50.8 million. This compares to our projection of $46.1 million.
Endoscopy devices’ revenues totaled $17.7 million, up 4.4% year over year on a reported basis and 4.3% at CER. This figure compares to our segmental projection of $18.7 million for the third quarter.
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
In the quarter under review, Merit Medical’s gross profit increased 18.3% year over year to $186.4 million. The gross margin expanded 217 basis points (bps) to 48.5%. We had projected a 45.4% gross margin for the third quarter.
Selling, general & administrative expenses increased 20.2% year over year to $119.8 million. Research and development expenses rose 16.8% year over year to $23.9 million. Adjusted operating expenses of $143.8 million rose 19.6% year over year.
Adjusted operating profit totaled $42.6 million, reflecting a 14.1% increase from the prior-year quarter. The adjusted operating margin in the third quarter expanded 11 bps to 11.1%.
Merit Medical exited third-quarter 2025 with cash and cash equivalents of $392.5 million compared with $341.8 million at the second-quarter end. Total long-term debt at the end of third-quarter 2025 was $732.9 million compared with $731.8 million at the second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $198.9 million compared with $152.1 million a year ago.
MMSI has raised its outlook for 2025.
Net revenues for 2025 are now projected to be between $1.502 billion and $1.515 billion (reflecting an increase of 10.7%-11.7% on a reported basis over the comparable reported figures of 2024), up from the prior outlook of $1.495 billion and $1.507 billion (reflecting an increase of 10.2%-11.1% on a reported basis over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $1.50 billion.
Revenues are now expected to be up 10.3%-11.2% at CER in 2025, up from the prior outlook of 9.7% -10.6% over the comparable figures of 2024.
Net revenues from the Cardiovascular segment are now expected to be in the range of $1.430 billion-$1.441 billion (representing an increase of 10%-11% over the comparable reported figures of 2024), up from the previous outlook of $1.423 billion-$1.434 billion (representing an increase of 9%-10% over the comparable reported figures of 2024).
The Endoscopy segment’s net revenues are now projected to be between $72 million and $74 million (representing an increase of 32%-34% over the comparable reported figures of 2024), wider than the earlier guidance of $72 million and $73 million (representing an increase of 32%- 34% over the comparable reported figures of 2024).
Adjusted EPS for 2025 is now projected to be in the range of $3.66-$3.79 (representing an increase of 6%-10% over the comparable reported figures of 2024), up from the prior outlook of $3.52-$3.72 (representing an increase of 2%-8% over the comparable reported figures of 2024). The Zacks Consensus Estimate is pegged at $3.63.
Merit Medical exited the third quarter of 2025 with better-than-expected results. The year-over-year uptick in the top line was impressive. The company saw revenue growth in both its segments and all the product categories within its Cardiovascular unit. Robust revenue growth in the United States and outside was impressive. The expansion of both margins bodes well for the stock.
In October, Merit Medical signed a definitive asset purchase agreement with Pentax of America, Inc., a subsidiary of PENTAX Medical, Inc., to acquire the C2 CryoBalloon device and related technology. MMSI, in September, announced that Embosphere Microspheres are now indicated in the European Union for use in genicular artery embolisation to treat patients with knee osteoarthritis. In August, the company announced the U.S. commercial release of the Prelude Wave Hydrophilic Sheath Introducer with SnapFix Securement Technology. These look promising for the stock.
However, the continued challenges related to the dynamic and uncertain global macroeconomic environment raise our concern.
Merit Medical currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation BSX, GE HealthCare Technologies Inc. GEHC and Intuitive Surgical, Inc. ISRG.
Boston Scientific, carrying a Zacks Rank of 2, reported third-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outpaced the consensus mark by 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term estimated growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.4%.
GE HealthCare reported third-quarter 2025 adjusted EPS of $1.07, beating the Zacks Consensus Estimate by 1.9%. Revenues of $5.14 billion surpassed the Zacks Consensus Estimate by 1.5%. It currently carries a Zacks Rank #2.
GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.1%.
Intuitive Surgical reported third-quarter 2025 adjusted EPS of $2.40, beating the Zacks Consensus Estimate by 20.6%. Revenues of $ 2.51 billion surpassed the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.3%.
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This article originally published on Zacks Investment Research (zacks.com).
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