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As you might know, ICU Medical, Inc. (NASDAQ:ICUI) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 9.3% to hit US$319m. ICU Medical also reported a statutory profit of US$1.16, which was an impressive 38% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, ICU Medical's four analysts currently expect revenues in 2021 to be US$1.25b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 38% to US$5.38. In the lead-up to this report, the analysts had been modelling revenues of US$1.24b and earnings per share (EPS) of US$5.41 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$216, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values ICU Medical at US$240 per share, while the most bearish prices it at US$190. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ICU Medical's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 1.4% revenue decline a notable change from historical growth of 25% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ICU Medical is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that ICU Medical's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ICU Medical analysts - going out to 2024, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with ICU Medical .
This article by Simply Wall St is general in nature. 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.
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