Merit Medical Positioned for Strong Earnings Ahead of Q1 Report
If you want to find a stock with a solid history of exceeding earnings estimates, consider Merit Medical (MMSI). Operating within the Zacks Medical – Dental Supplies sector, the company is poised to continue its successful trend as it heads toward its next quarterly report.
Merit Medical has consistently surpassed earnings estimates, particularly highlighted by its performance in the last two quarters. The average surprise from these quarters was 9.77%.
Quarterly Performance Review
In the last reported quarter, Merit Medical achieved earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.83 per share by 12.05%. The prior quarter also saw a similar trend, with the company reporting earnings of $0.86 per share against an expected $0.80, which meant a positive surprise of 7.50%.
Price and EPS Surprise Chart
Analyst Estimates and Zacks Rank
Estimates for Merit Medical are on the rise, largely due to its excellent earnings surprise record. The company currently holds a positive Zacks earnings ESP (Expected Surprise Prediction) of +0.86%. This indicator, along with a solid Zacks Rank of #3 (Hold), suggests a likely earnings beat is forthcoming.
Research indicates that stocks exhibiting both a positive earnings ESP and a Zacks Rank of #3 or higher achieve positive surprises about 70% of the time. This means that out of ten stocks fitting this profile, up to seven could potentially surpass consensus estimates.
Understanding Earnings ESP
The Zacks earnings ESP metric compares the Most Accurate Estimate with the Zacks Consensus Estimate for a given quarter. Analysts revising their estimates closer to an earnings release often provide the most accurate insights based on the latest information.
The next earnings report for Merit Medical is scheduled for April 24, 2025. While a negative earnings ESP does not guarantee a miss, it does diminish the predictive effectiveness of this metric.
Investment Insights
Investors should understand that many companies can beat consensus EPS estimates for various reasons beyond just strong earnings. Some stocks might even maintain stability despite underperforming estimates. Therefore, checking a company’s earnings ESP before its quarterly release can enhance the likelihood of successful investments.
Take advantage of our earnings ESP Filter to identify prime stocks to buy or sell before they report.
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This article originally appeared on Zacks Investment Research (zacks.com).
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The views expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.
