Mindray Revises Revenue Guidance


Chinese medical devices maker, Mindray Medical International Ltd (NYSE:MR) revealed that it expects net revenues of $1,212 million for full year 2013, up 14.3% over the year-ago level. This compared with the Zacks Consensus Estimate for 2013 revenues of $1,200 million.

The expected revenue growth for 2013 was higher than the previous guidance of at least 13% but still lower than its original guidance of at least 18% for the year due to sluggish hospital purchase trend in China. As a result, the revised guidance failed to entice investors as share prices dipped 0.7% after the market closed yesterday.

Given the estimated 2013 revenue guidance, Mindray Medical expects adjusted net income of $236 million for 2013, up about 11.5% from 2012. The adjusted figure excludes the tax benefits related to the key software enterprise status ($19.4 million recognized in the first quarter of 2013) and includes a corporate income tax of 15% applicable to the Shenzhen subsidiary.

MR revealed that Western Europe and some other emerging markets performed well in 2013. In that year, Mindray Medical has launched 11 new products and completed two acquisitions, including the Zonare.

For 2014, MR expects revenues to grow at least 15% year-over-year. The company expects Western Europe and certain other emerging markets to continue to perform well and contribute to top-line growth in the year. Mindray Medical plans to launch 7 to 10 products in the year to further expand its product offerings.

Mindray Medical is a bellwether in the Chinese med-tech industry with a solid international presence. A key distinction with domestic competitors is that the majority of Mindray’s products have CE Mark and/or Food and Drug Administration (:FDA) clearance.

MR maintains a decent product pipeline and brings out several new products each year. New products contribute in a major way to the company’s revenues. However, sluggish market in China is a matter of concern for the company’s earnings.

Currently, Mindray Medical carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the medical instruments industry include CryoLife, Inc. (NYSE:CRY), Natus Medical Inc. (NASD:BABY) and AngioDynamics Inc. (NASD:ANGO). CryoLife and Natus Medical carry a Zacks Rank #1 (Strong Buy), while AngioDynamics carries a Zacks Rank #2 (Buy).

Read the Full Research Report on MR
Read the Full Research Report on ANGO
Read the Full Research Report on BABY
Read the Full Research Report on CRY

Zacks Investment Research

View Comments (0)