Merit Medical Systems, Inc. (MMSI) Slashes FY19 Revenue Guidance
In February 2019, Merit announced in its fourth quarter 2018 and fiscal year 2018 results that the Company forecasted net sales of $1.011 billion to $1.030 billion for fiscal year 2019 (“FY19”). However, in July 2019, Merit’s second quarter 2019 financial results fell short of analyst expectations and the Company cut its FY19 sales outlook to $1.007-1.029 billion, citing “slower than expected uptake of acquired products” that were “short term” issues. Then, on October 30, 2019, Merit reported its third quarter 2019 results, slashing its FY19 revenue guidance by 20% and reporting significant operational issues in all aspects of its business, many of which were due to its “own overestimation and forecasting.” Following these disclosures, Merit’s stock declined a staggering 62% from its closing price of $54.84 per share on July 25, 2019 to close at $20.66 per share on October 31, 2019.
