ICU Medical Earnings Preview

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ICU Medical (NAS: ICUI) will try to beat its earnings estimates for the third consecutive quarter. The company will unveil its latest earnings on Monday, April 16. ICU Medical is engaged in the development, manufacturing and sale of proprietary, disposable medical connection systems for use in vascular therapy applications.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like ICU Medical better than competitor Insulet overall. Fourteen out of 17 analysts rate Insulet a buy compared to five of five for ICU Medical. Analysts haven't adjusted their rating of ICU Medical for the past three months.
  • Revenue Forecasts: On average, analysts predict $74.5 million in revenue this quarter. That would represent a rise of 4.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.48 per share. Estimates range from $0.46 to $0.50.

What our community says:
CAPS All-Stars are solidly backing the stock, with 88% granting it an "outperform" rating. The community at large concurs with the All-Stars, with 83.7% giving it a rating of "outperform." The CAPS rating of five out of five stars for ICU Medical is far more upbeat than the community assessment.


Management:
ICU Medical's profit has risen year-over-year by an average of 48.7% over the past five quarters. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 2.6 percentage points in the last quarter. Revenue rose 1.1% while cost of sales rose 6.3% to $40.5 million from a year earlier.

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. ICU Medical has seen rising net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. See how ICU Medical has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

47.0%

46.5%

46.5%

48.4%

Operating Margin

33.7%

17.4%

18.0%

17.1%

Net Margin

23.3%

12.1%

12.2%

11.3%

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