- At the Annual Needham Healthcare Conference, Merit Medical Systems Inc's (NASDAQ:MMSI) management said that inflationary pressures and supply chain issues have been manageable and have not had a material impact on its results year-to-date.
- Additionally, they noted that China's lockdowns had no material impact, while international growth has been strong in other regions, including Australia and Europe.
- Needham said that though, MMSI is currently shipping via air but plans to return to ocean shipping later this year.
- MMSI's exposure to Ukraine, Russia, and Belarus is around ~$12 million, and management said they would continue to do business in Ukraine.
- Also Read: Medical Device Maker Merit Medical Mulls Sale.
- Based on MMSI's 2022 guidance, the analysts believe that achieving at least the low-end of its 2023 operating margin target of 18-21% is feasible despite the increasingly difficult inflationary environment.
- Initially, Needham was skeptical that MMSI could achieve this. However, it notes that the 2022 guidance for operating margin is ~17% at the mid-point.
- Management highlighted progress on consolidating manufacturing plants from recent acquisitions that could boost gross margin improvement.
- The Company will announce Q1 FY22 results on April 27.
- Price Action: MMSI shares are down 0.17% at $68.72 during the market session on the last check Monday.
