Mindray Meets Q2 Earnings Estimates - Analyst Blog

By
A A A

Chinese medical devices maker, Mindray Medical International Ltd ( MR ) posted a 17.8% rise in 2013-second-quarter adjusted earnings per share to 53 cents from 45 cents a year ago and met the Zacks Consensus Estimate. Reported net earnings rose 19.3% year-over-year to $62.1 million from $52.0 million in the second quarter of 2012.

Net revenues grew 14.7% to $307.2 million but missed the Zacks Consensus Estimate of $319 million. Thanks to MR's strong China sales that surged 27.9% to $147.4 million, representing 48.0% of the company's total net revenues. International sales were $159.7 million, up 4.7% a year ago.

Segment Revenues

Revenues from Patient Monitoring & Life Support Products rose 2.3% to $117.2 million from $114.6 million in the second quarter of 2012, contributing 38.2% to overall net revenues in the quarter.

Revenues from In-Vitro Diagnostic Products went up 19.5% to $88.3 million from $73.9 million in the prior-year quarter, contributing 28.7% to net revenues. Reagents sales accounted for 36.6% of this segment's net revenues.

Revenues from Medical Imaging Systems escalated 18.6% to $76.1 million from $64.1 million in the 2012-quarter, contributing 24.8% to net revenues.

Revenues from Others (including sales from the orthopedics business, service revenues from extended warranties, sales of accessories and repair service revenues for post-warranty period) soared 68.7% to $25.5 million from $15.1 million a year ago, contributing 8.3% to overall net revenues.

Financial Position

MR had $195.4 million in cash and cash equivalents as of Jun 30, 2013, down 21.2% from $247.9 million as of Dec 31, 2012. Total bank loans stood at $195.1 million, up 44.3% from $135.1 million as of Dec 31, 2012.

In the first six months of 2013, cash flow from operating activities fell 2.3% to $118.6 million from $121.5 million in the same period of 2012, due to unfavorable changes in current assets and liabilities, net of effects of acquisitions. Capital expenditure increased 22.6% to $40.2 million compared with $32.8 million a year ago.

Guidance

Mindray provides guidance on a full-year basis. The company raised its revenue guidance as it expects at least 18% rise in revenues over 2012. However, MR reiterated adjusted net earnings guidance, anticipating at least 15% rise from 2012.

The guidance excludes any tax benefit related to the National Key Software Enterprise status and assumes a corporate income tax rate of 15% for the Shenzhen subsidiary. Mindray also expects capital expenditures of $130 million for the year.

Our Take

Mindray is a bellwether in the Chinese MedTech industry with a solid international presence. A key distinction with domestic competitors is that the majority of Mindray's products have CE Mark and/or Food and Drug Administration (FDA) clearance.

MR maintains a decent product pipeline and brings out several new products each year. New products contribute in a major way to the company's revenues.

Currently, the stock carries a Zacks Rank #2 (Buy). Other stocks that are also performing well in the medical instruments industry include Thoratec Corporation ( THOR ) and Cyberonics Inc. ( CYBX ), both with a Zacks Rank #1 (Strong Buy), and IDEXX Laboratories, Inc. ( IDXX ) with a Zacks Rank #2 (Buy).



CYBERONICS INC (CYBX): Free Stock Analysis Report

IDEXX LABS INC (IDXX): Free Stock Analysis Report

MINDRAY MEDICAL (MR): Free Stock Analysis Report

THORATEC CORP (THOR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CYBX , IDXX , MR , THOR

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
100%
100%

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com