Investors in Merit Medical Systems, Inc. (NASDAQ:MMSI) had a good week, as its shares rose 2.9% to close at US$98.80 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of US$340m and statutory earnings per share of US$0.48. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Merit Medical Systems

Taking into account the latest results, the consensus forecast from Merit Medical Systems' eleven analysts is for revenues of US$1.47b in 2025. This reflects a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 23% to US$2.52. Before this earnings report, the analysts had been forecasting revenues of US$1.46b and earnings per share (EPS) of US$2.57 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$110, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Merit Medical Systems, with the most bullish analyst valuing it at US$125 and the most bearish at US$103 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Merit Medical Systems' rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Merit Medical Systems is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Merit Medical Systems. Long-term earnings power is much more important than next year's profits. We have forecasts for Merit Medical Systems going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Merit Medical Systems' balance sheet, and whether we think Merit Medical Systems is carrying too much debt, for free on our platform here.

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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.