The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ICU Medical missed on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly, and GAAP earnings per share contracted.
Gross margins shrank, operating margins contracted, and net margins grew.
ICU Medical booked revenue of $76.5 million. The four analysts polled by S&P Capital IQ expected revenue of $78.6 million. Sales were 1.1% higher than the prior-year quarter's $75.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.26. The four earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share on the same basis. GAAP EPS of $1.26 for Q4 were 75% higher than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.0%, 260 basis points worse than the prior-year quarter. Operating margin was 15.0%, 680 basis points worse than the prior-year quarter. Net margin was 23.3%, 1,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $76.1 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $326.2 million. The average EPS estimate is $2.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 69 members out of 84 rating the stock outperform, and 15 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give ICU Medical a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ICU Medical is buy, with an average price target of $51.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.