Merit Medical Systems Inc (MMSI) Reports Q3 2023 Earnings: Revenue Up 9.8% YoY
Merit Medical Systems Inc (NASDAQ:MMSI) reported Q3 2023 revenue of $315.2 million, a 9.8% increase YoY.
GAAP net income for Q3 2023 was $25.8 million, or $0.44 per share, compared to $15.3 million, or $0.27 per share, for Q3 2022.
Non-GAAP net income for Q3 2023 was $43.5 million, or $0.75 per share, compared to $37.0 million, or $0.64 per share, for Q3 2022.
As of September 30, 2023, Merit had cash and cash equivalents of $58.7 million, total debt obligations of $287.1 million, and available borrowing capacity of approximately $558 million.
Merit Medical Systems Inc (NASDAQ:MMSI), a leading global manufacturer and marketer of healthcare technology, announced its Q3 2023 earnings on October 26, 2023. The company reported a revenue of $315.2 million for the quarter ended September 30, 2023, marking a 9.8% increase compared to the same quarter in 2022. The company's constant currency revenue, organic, for Q3 2023 increased by 7.1% compared to the prior year period.
Financial Performance
Merit's GAAP gross margin for Q3 2023 was 45.1%, compared to 44.8% for the same period in 2022. The company's non-GAAP gross margin for Q3 2023 was 49.8%, compared to 48.4% for Q3 2022. The GAAP net income for Q3 2023 was $25.8 million, or $0.44 per share, compared to $15.3 million, or $0.27 per share, for Q3 2022. The non-GAAP net income for Q3 2023 was $43.5 million, or $0.75 per share, compared to $37.0 million, or $0.64 per share, for Q3 2022.
Company's Commentary
We delivered 7.1% constant currency, organic, revenue growth and 9.7% constant currency total revenue growth in the third quarter of 2023, including the contributions of our recently acquired interventional solutions from AngioDynamics, said Fred P. Lampropoulos, Merits Chairman and Chief Executive Officer. Our third quarter revenue results exceeded the high end of our expectations, reflecting broad-based strength across each of our primary product categories, particularly in the U.S. We also delivered significant year-over-year improvements in profitability with non-GAAP operating income, net income and earnings per share increasing 25%, 18% and 16%, respectively, year-over-year. We are comfortable with our teams ability to achieve our financial guidance for fiscal year 2023 which we updated this afternoon - and expect continued progress in year three of our Foundations for Growth Program and the related financial targets for the three-year period ending December 31, 2023.
Financial Position
As of September 30, 2023, Merit had cash and cash equivalents of $58.7 million, total debt obligations of $287.1 million, and available borrowing capacity of approximately $558 million. This compares to cash and cash equivalents of $58.4 million, total debt obligations of $198.2 million, and available borrowing capacity of approximately $523 million as of December 31, 2022.
Updated Fiscal Year 2023 Financial Guidance
Merit updated its financial guidance for the year ending December 31, 2023. The company now expects net sales to be between $1.242 billion and $1.251 billion, representing an 8% to 9% increase YoY. The GAAP net income is expected to be between $89 million and $92 million, and the non-GAAP net income is expected to be between $171 million and $174 million.
Explore the complete 8-K earnings release (here) from Merit Medical Systems Inc for further details.
This article first appeared on GuruFocus.
