Merit Medical (MMSI) Now A Strong Buy On Estimate Revisions

On Aug 23, Zacks Investment Research raised Merit Medical Systems Inc. (NASDAQ:MMSI) to a Zacks Rank #1 (Strong Buy) on estimate revisions.

Why the Upgrade?

The upgrade was primarily driven by estimate revisions over the last 30 days.

The Zacks Consensus Estimate for full-year 2016 is currently pegged at 98 cents per share, which moved up a penny over the same time frame, as two out of four analysts revised their estimates upward.

Meanwhile, the Zacks Consensus Estimate for full-year 2017 has been revised upward by 2.6% (3 cents) to the present $1.17 per share, as three out of four analysts raised their projections.

Key Growth Factors

The estimate revisions were primarily driven by Merit Medical’s strong second-quarter 2016 results. The company’s adjusted earnings of 26 cents per share outpaced the Zacks Consensus Estimate by couple of cents (8.3%). Sales of $151.7 million also managed to beat the Zacks Consensus Estimate of $148 million.

Sales increased 9.9% on a year-over-year basis at constant currency; driven by 9.6% growth in cardiovascular sales and 4.8% increase in endoscopy segment sales.

Merit Medical noted strong order growth from China, Japan, Russia, in addition to the United States in the quarter. The company’s results were also positively driven by robust performance in Australia and Canada.

Merit Medical announced the launch of two new HeRO products, the product line which it acquired from CryoLife (NYSE:CRY) , earlier this year. Additionally, the acquisition of DFINE Inc. will expand the company’s vertebral spine business (kyphoplasty and vertebralplasty) as well the oncology business.

Other Stocks to Consider

Other favorably ranked stocks include Masimo (NASDAQ:MASI) and Halyard Health (NYSE:HYH) . Both the stocks sport a Zacks Rank #1 (Strong Buy).