Earnings Update: ICU Medical, Inc. (NASDAQ:ICUI) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
Investors in ICU Medical, Inc. (NASDAQ:ICUI) had a good week, as its shares rose 6.1% to close at US$109 following the release of its yearly results. ICU Medical reported revenues of US$2.3b, in line with expectations, but it unfortunately also reported (statutory) losses of US$1.23 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for ICU Medical
Following last week's earnings report, ICU Medical's five analysts are forecasting 2024 revenues to be US$2.29b, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$2.30b and earnings per share (EPS) of US$3.18 in 2024. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
The consensus price target held steady at US$142, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ICU Medical at US$161 per share, while the most bearish prices it at US$135. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ICU Medical is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that ICU Medical's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that ICU Medical is also expected to grow slower than other industry participants.
The Bottom Line
The biggest low-light for us was that the forecasts for ICU Medical dropped from profits to a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ICU Medical's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$142, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ICU Medical going out to 2026, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for ICU Medical that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
