The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how medical devices & supplies - cardiology, neurology, vascular stocks fared in Q4, starting with Merit Medical Systems (NASDAQ: MMSI).

The medical devices and supplies industry, particularly in the fields of cardiology, neurology, and vascular care, benefits from a business model that balances innovation with relatively predictable revenue streams. These companies focus on developing life-saving devices such as stents, pacemakers, neurostimulation implants, and vascular access tools, which address critical and often chronic conditions. The recurring need for these devices, coupled with growing global demand for advanced treatments, provides stability and opportunities for long-term growth. However, the industry faces hurdles such as high research and development costs, rigorous regulatory approval processes, and reliance on reimbursement from healthcare systems, which can exert downward pressure on pricing. Looking ahead, the industry is positioned to benefit from tailwinds such as aging populations (which tend to have higher rates of disease) and technological advancements like minimally invasive procedures and connected devices that improve patient monitoring and outcomes. Innovations in robotic-assisted surgery and AI-driven diagnostics are also expected to accelerate adoption and expand treatment capabilities. However, potential headwinds include pricing pressures stemming from value-based care models and continued complexity changing from navigating regulatory frameworks that may prioritize further lowering healthcare costs.

The 4 medical devices & supplies - cardiology, neurology, vascular stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results.

Merit Medical Systems (NASDAQ: MMSI)

Founded in 1987 and now offering over 1,700 patented products across global markets, Merit Medical Systems (NASDAQ: MMSI) manufactures and markets specialized medical devices used in minimally invasive procedures for cardiology, radiology, oncology, critical care, and endoscopy.

Merit Medical Systems reported revenues of $393.9 million, up 10.9% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

“Merit delivered better-than-expected revenue and financial results in the fourth quarter,” said Martha G. Aronson, Merit’s President and CEO.

Merit Medical Systems achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 10% since reporting and currently trades at $74.18.

Is now the time to buy Merit Medical Systems? Access our full analysis of the earnings results here, it’s free.

Best Q4: Penumbra (NYSE: PEN)

Founded in 2004 to address challenging medical conditions with significant unmet needs, Penumbra (NYSE: PEN) develops and manufactures innovative medical devices for treating vascular diseases and providing immersive healthcare rehabilitation solutions.

Penumbra reported revenues of $385.4 million, up 22.1% year on year, outperforming analysts’ expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Penumbra scored the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $339.64.

Is now the time to buy Penumbra? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Artivion (NYSE: AORT)

Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.

Artivion reported revenues of $116 million, up 19.2% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted EPS in line with analysts’ estimates and a slight miss of analysts’ revenue estimates.

Artivion delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 5.2% since the results and currently trades at $38.54.

Read our full analysis of Artivion’s results here.

ICU Medical (NASDAQ: ICUI)

Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.

ICU Medical reported revenues of $535.9 million, down 13.8% year on year. This print beat analysts’ expectations by 1%. It was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

ICU Medical had the slowest revenue growth among its peers. The stock is down 5.1% since reporting and currently trades at $142.17.

Read our full, actionable report on ICU Medical here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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