The 10-second takeaway
For the quarter ended March 31 (Q1), ICU Medical met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share grew.
Margins expanded across the board.
ICU Medical logged revenue of $74.3 million. The six analysts polled by S&P Capital IQ expected to see a top line of $74.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.58. The five earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.58 for Q1 were 9.4% higher than the prior-year quarter's $0.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.5%, 320 basis points better than the prior-year quarter. Operating margin was 16.2%, 110 basis points better than the prior-year quarter. Net margin was 11.7%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $84.1 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $335.0 million. The average EPS estimate is $2.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 88 members out of 103 rating the stock outperform, and 15 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give ICU Medical a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ICU Medical is outperform, with an average price target of $69.50.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.