ICU Medical Shares Popped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes—just in case they’re material to our investing thesis.

What: Medical supplies company ICU Medical (Nasdaq: ICUI  ) finds its shares up 12% today after the company reported stellar fourth-quarter results after the bell last night.

So what: ICU Medical blew past analyst expectations in the fourth quarter with a $0.72-per-share profit on $75.6 million in revenue versus consensus estimates of $0.53 on revenue of $70.8 million. ICU Medical attributed much of the jump in earnings to a 460-basis-point increase in its year-over-year gross margins and a favorable product mix. The company forecasts fiscal 2011 revenues and profits will be slightly higher than current analyst expectations.

Now what: All around this was a stellar quarter and another great year for ICU Medical. The key to its success is its gross margins and its push into international markets. Unlike larger rivals Becton, Dickinson (NYSE: BDX  ) and Baxter International (NYSE: BAX  ) , the company is not regularly followed by many Wall Street analysts, but as I've highlighted before, it pays to keep an eye on these smaller players whose growth and cash-rich balance sheets can ride under the radar. I continue to see the company as a long-term winner and today's results further strengthen that viewpoint.

Interested in more info on ICU Medical? Add it to your watchlist by clicking here.

Fool contributor Sean Williams does not own shares in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1433468, ~/Articles/ArticleHandler.aspx, 10/25/2016 3:54:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,173.14 -49.89 -0.27%
S&P 500 2,143.46 -7.87 -0.37%
NASD 5,281.22 -28.61 -0.54%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 3:38 PM
BAX $49.20 Up +0.76 +1.57%
Baxter CAPS Rating: ****
BDX $171.02 Down -1.15 -0.67%
Becton Dickinson CAPS Rating: ****
ICUI $144.23 Up +0.74 +0.52%
ICU Medical CAPS Rating: ***