Merit Medical falls after giving 2012 outlook

NEW YORK (AP) — Shares of Merit Medical Systems Inc. tumbled Friday after the disposable medical device maker offered a disappointing 2012 profit forecast.

THE SPARK: Merit said it expects an adjusted profit of 67 cents to 72 cents per share in 2012, well below the 86 cents per share that analysts, on average, had been forecasting, according to estimates compiled by FactSet.

Merit's 2012 revenue guidance for a 9- to 12 percent gain, or a range of $392 million to $402 million, was more in line with Wall Street estimates for $394.9 million.

For 2011, the company reported an adjusted profit for 2001 of 78 cents per share on $359.4 million in revenue.

THE BIG PICTURE: The South Jordan, Utah-based Merit reported its fourth-quarter results and issued its guidance after the market closed on Thursday.

The company said its quarterly profit rose 18 percent, to $5 million from $4.2 million the prior year. Because the company has more stock on the market than it did a year ago, its per-share profit was unchanged at 12 cents. Excluding one-time charges, Merit said it earned 18 cents per share in the latest quarter. Revenue grew 12 percent, to $91.1 million from $81.2 million.

Analysts expected Merit to post a profit of 19 cents per share in profit and revenue of $91.6 million, according to FactSet.

Merit said sales improved across all its businesses. Revenue for its Endotek stent unit rose 51 percent, catheter sales increased 25 percent, and sales of embolotherapy bleeding control products grew 15 percent.

SHARE ACTION: Merit Medical Systems shares lost 99 cents, or 7.4 percent, to $12.36 in afternoon trading. The stock started the session down 27 percent since Merit reported its second-quarter results on July 21.