Merit Medical Systems, Inc. (MMSI) boosted its net income by 28% in its latest earnings report.
Company Description
Merit Medical Systems, Inc. produces single-use medical products of high quality and superior value primarily for use in diagnosis and treatment of cardiovascular disease. The company’s products are designed to provide physicians and other health care professionals with devices that enable them to perform interventional and diagnostic procedures.
Net Income Up 28%
On Apr 28 the Utah-based company announced record sales of $58.4 million, 9% higher than the first quarter last year. Net income came in 28% higher at $5.5 million.
The record sales drove earnings per share to 19 cents, up from 15 cents in Q1 of 2008. Analysts were only expecting earnings of 16 cents, making this the first surprise in the past 4 quarters.
Analyts Raising Estimates
Since the report full-year estimates for 2009 and 2010 have inched higher. The consensus for 2009 is now 80 cents, up 1 penny. Forecasted for next year are averaging 98 cents, up 4 cents.
These estimates are calling for more than 7% growth this year and another 24% growth in 2010.
Shares are trading at roughly 20 times forward earnings, not to bad for a medical company. However, given the growth prospects, the PEG ratio is just above 1.0.
The Chart
Shares are facing some resistance near $17, but if the momentum continues they could breakout soon. Take a look at the chart below.
