In This Article:
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Total Revenue: $355.2 million, up 9% year-over-year on a GAAP basis and 10% on a constant currency basis.
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Non-GAAP Operating Margin: 19.6% of sales, up approximately 305 basis points year-over-year.
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Non-GAAP Earnings Per Share: Increased 26% year-over-year.
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Non-GAAP Gross Margin: 53.5%, up 304 basis points year-over-year.
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Free Cash Flow: More than $185 million for fiscal year 2024, up 67% year-over-year.
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Cardiovascular Segment Revenue Growth: 8% year-over-year.
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Endoscopy Segment Revenue Growth: 88% year-over-year.
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Net Income: $56.3 million or $0.93 per share, compared to $43.1 million or $0.74 per share in the prior year period.
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Operating Expenses: Increased 9% year-over-year.
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Cash and Cash Equivalents: $376.7 million as of December 31, 2024.
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Total Debt Obligations: $747.5 million as of December 31, 2024.
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US Sales Growth: Increased nearly 14% on a constant currency basis.
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International Sales Growth: Increased 5% year-over-year on a constant currency basis.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Merit Medical Systems Inc (NASDAQ:MMSI) reported a total revenue of $355.2 million for Q4 2024, marking a 9% year-over-year increase on a GAAP basis and a 10% increase on a constant currency basis.
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The company achieved a non-GAAP operating profit growth of 30% and a non-GAAP operating margin of 19.6%, up approximately 305 basis points year-over-year.
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Non-GAAP earnings per share grew by 26%, exceeding the high end of expectations.
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Merit Medical Systems Inc (NASDAQ:MMSI) generated strong free cash flow of more than $185 million in 2024, up 67% year-over-year.
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The Cardiovascular segment saw an 8% growth, and the Endoscopy segment experienced an 88% growth in Q4 2024.
Negative Points
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The company's EPS guidance for 2025 was perceived as conservative, partly due to accounting on the convertible note, which added $0.11 of dilution.
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International sales growth was softer than expected, particularly in the EMEA region, due to softness in Russia and distributor markets.
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Operating expenses increased by 9% in Q4 2024, driven by a 6% increase in SG&A expenses and a 26% increase in R&D expenses.
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The Endoscopy segment's guidance for 2025 was slightly lower than anticipated, attributed to the integration of two sales forces.
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Merit Medical Systems Inc (NASDAQ:MMSI) faces potential headwinds from tariffs, which are not factored into the 2025 financial guidance.
Q & A Highlights
Q: Raul, the EPS guidance seems lighter than expected. Are there factors influencing this conservative guidance? A: Raul Parra, CFO: The EPS guidance reflects two main factors: an additional $5 million in interest expense, which is about an $0.08 headwind, and a $0.11 impact from the convertible debt dilution. Excluding these, EPS growth would align more with expectations at 9% to 12%.