Merit Medical Q2 beats on EPS, misses on rev

Merit Medical (NSDQ:MMSI) today released its 2nd quarter earnings, beating the Street on earnings per share but falling short on revenue.

The South Jordan, Utah-based company reported profits of $7.3 million, or 16¢ per share, on sales of $151.1 million for the 3 months ended June 30.

That amounts to a 1.5% bottom-line slide on sales growth of 9.4% compared with the same period in 2015.

After adjusting to exclude 1-time items, earnings per share were 26¢, exactly in line with what analysts on Wall Street were looking for for the quarter. Revenue fell just short of the Street’s expectations of $152.6 million.

“The 2nd quarter was packed with opportunity and activity. We hired more than 50 production and support personnel to ramp up production of various catheters and access products. This effort involved training, sourcing and manufacturing, and we estimate that approximately $3.6 million of new revenue was derived from the sale of those products. We have also acquired additional production equipment that is now coming on line for what we anticipate to be a larger than expected opportunity for the sale of such products. Our new direct operations in Canada and Australia have exceeded our initial expectations, and we believe they will continue to provide exceptional growth. We have also completed the transition of production for our HeRO product line to our South Jordan, Utah facility and have reduced our initial cost estimates. Additionally, we anticipate that we will introduce two new HeRO products during the third quarter,” CEO Fred Lampropoulos said in a press release.

Shares of Merit are up 2.5% to trade at $23.78 as of 1:33 p.m. EDT.

“Finally, substantial due diligence and planning relating to DFINE, Inc. resulted in the previously announced acquisition. During the upcoming quarters, we expect to complete the restructuring and integration of the DFINE operations, which we believe will enhance our business prospects going forward. I appreciate my staff and all those who accomplished so much in just 90 days,” Lampropoulos said in prepared remarks.

Earlier this month, Merit Medical said it paid $97.5 million in cash to acquire DFine and created a new division to incorporate DFine’s spine devices.

San Jose, Calif.-based DFine makes the StabiliT line of devices, for injecting bone cement into vertebral fractures, and the Star spine tumor ablation system. Jordan, Utah-based Merit said its new interventional oncology & spine division will unite those products with its own line of oncology devices, including embolics, microcatheters and biopsy products.

DFine put up $33.4 million in sales last year, ¾ of that coming from the U.S. Both of its devices have 510(K) clearance in the U.S. and CE Mark approval in the European Union, Merit said.

The post Merit Medical Q2 beats on EPS, misses on rev appeared first on MassDevice.

from MassDevice http://ift.tt/2aNflPy