On Jun 26, we have updated our research report on
Mindray Medical International Limited
). Sluggish purchasing and marketing activities in the healthcare
sector of China continues to drag down the company's sales.
MR posted a disappointing 34.0% fall in adjusted earnings per share
to 33 cents for the 2014-first quarter from 50 cents a year ago and
missed the Zacks Consensus Estimate by 3 cents.
Adjusted net earnings dipped 35.7% year-over-year to $38.5 million
from $59.8 million in the first quarter of 2013. Reported earnings
decreased 37.5% to 30 cents per share from 48 cents per share in
the 2013-quarter or 37.9% to $35.6 million from $57.4 million in
the year-ago quarter.
Net revenues grew 9.4% to $264.8 million, lying below the Zacks
Consensus Estimate of $291 million. International revenues upped
13.9% to $148.9 million while revenues from China grew at a slower
pace of 4.0% to $115.8 million due to sluggish purchasing and
marketing activities in the healthcare sector.
Healthcare related reform measures in China have negatively
impacted Mindray's business by creating uncertainties, reducing
demand for its products. Further, the company has traditionally
generated a part of its domestic revenues from government tender
sales. Tenders in China are a discretionary decision of the
government and can vary from year to year.
However, MR continues to expect 2014 net revenues to grow at least
15% over 2013 based on strengths in Western Europe and some
emerging markets as well as gradual improvement in China.
Currently, MR retains a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical instruments industry include
Alphatec Holdings, Inc.
). Alphatec and Luminex sport a Zacks Rank #1 (Strong Buy), while
Masimo carries a Zacks Rank #2 (Buy).
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