Chinese medical devices maker,
Mindray Medical International Ltd
) revealed that it expects net revenues of $1,212 million for
full year 2013, up 14.3% over the year-ago level. This compared
with the Zacks Consensus Estimate for 2013 revenues of $1,200
The expected revenue growth for 2013 was higher than the previous
guidance of at least 13% but still lower than its original
guidance of at least 18% for the year due to sluggish hospital
purchase trend in China. As a result, the revised guidance failed
to entice investors as share prices dipped 0.7% after the market
Given the estimated 2013 revenue guidance, Mindray Medical
expects adjusted net income of $236 million for 2013, up about
11.5% from 2012. The adjusted figure excludes the tax benefits
related to the key software enterprise status ($19.4 million
recognized in the first quarter of 2013) and includes a corporate
income tax of 15% applicable to the Shenzhen subsidiary.
MR revealed that Western Europe and some other emerging markets
performed well in 2013. In that year, Mindray Medical has
launched 11 new products and completed two acquisitions,
including the Zonare.
For 2014, MR expects revenues to grow at least 15%
year-over-year. The company expects Western Europe and certain
other emerging markets to continue to perform well and contribute
to top-line growth in the year. Mindray Medical plans to launch 7
to 10 products in the year to further expand its product
Mindray Medical is a bellwether in the Chinese med-tech 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. However, sluggish market in China is a matter
of concern for the company's earnings.
Currently, Mindray Medical carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the medical instruments industry include
Natus Medical Inc.
). CryoLife and Natus Medical carry a Zacks Rank #1 (Strong Buy),
while AngioDynamics carries a Zacks Rank #2 (Buy).
ANGIODYNAMICS (ANGO): Free Stock Analysis
NATUS MEDICAL (BABY): Free Stock Analysis
CRYOLIFE INC (CRY): Free Stock Analysis
MINDRAY MEDICAL (MR): Free Stock Analysis
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