Thursday, Merit Medical Systems, Inc. (MMSI), a manufacturer of proprietary disposable devices for healthcare industry, reported a rise in fourth-quarter profit compared to the corresponding quarter last year. However, results for the quarter fell short of analysts' estimates.
The South Jordan, Utah-based company reported a fourth quarter net income of $5.4 million or $0.19 per share, compared to $4.7 million or $0.17 per share in the year-ago quarter.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share. Analysts' estimates typically exclude special items.
Earnings for the quarter were negatively impacted by an increase in income tax expense of $356 thousand for losses in life insurance investments related to the company's deferred compensation plan which are not deductible for income tax reporting purposes.
Gross margins in the quarter improved to 40.5% of sales from 39.8% of sales in the same period a year ago.
Revenues for the quarter increased 7% to $58.0 million from $54.3 million last year, while analysts expected revenues of $60.20 million.
In the product categories, catheter sales rose 23%; custom kit and tray sales grew 15%; stand-alone device sales increased 4%; and inflation device sales decreased 4% from last year. Sales were affected by deliveries of inflation devices to an OEM customer, foreign exchange rates, and the recovery process of the company's facility in Angleton, Texas, which was damaged by Hurricane Ike.
For the full year, the company reported a net income of $20.7 million or $0.73 per share, compared to $15.6 million or $0.55 per share in the prior year. Revenues for the year increased 9% to $227.1 million from $207.8 million in the previous year.
Analysts expected the company to report earnings of $0.74 per share on revenues of $229.04 million.
MMSI closed Thursday's regular trading session on the Nasdaq at $16.77, up $0.26 or 1.57%.
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