Investors in Merit Medical Systems, Inc. (NASDAQ:MMSI) had a good week, as its shares rose 4.1% to close at US$94.61 following the release of its quarterly results. Revenues were US$355m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.49 were also better than expected, beating analyst predictions by 14%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Merit Medical Systems after the latest results.

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Taking into account the latest results, the current consensus from Merit Medical Systems' ten analysts is for revenues of US$1.48b in 2025. This would reflect a reasonable 6.6% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 2.8% to US$2.13. In the lead-up to this report, the analysts had been modelling revenues of US$1.48b and earnings per share (EPS) of US$2.39 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Merit Medical Systems

It might be a surprise to learn that the consensus price target fell 9.2% to US$107, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Merit Medical Systems at US$116 per share, while the most bearish prices it at US$100.00. This is a very narrow spread of estimates, implying either that Merit Medical Systems is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Merit Medical Systems' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Merit Medical Systems'historical trends, as the 8.8% annualised revenue growth to the end of 2025 is roughly in line with the 7.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.0% per year. So although Merit Medical Systems is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Merit Medical Systems going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Merit Medical Systems has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.