bunch of white oval medication tablets and white medication capsules

ICU Medical (NasdaqGS:ICUI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

ICU Medical, Inc. (NasdaqGS:ICUI) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of $1.31/share on revenue of $291.4 million. The consensus earnings per share (EPS) of $1.31/share is based on a poll of 3 analysts and represents a decline in eps of −20.8% over the same quarter last year, when the company reported earnings of $1.65/share.

The revenue forecast of $291.4 million based on a poll of 3 analysts implies a year-over-year (YoY) decline in revenue of −5.2%. Last year the company reported $307.5 million in revenue for the quarter.

Expected to report EPS contraction of −20.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $291.37 $307.47 −5.2%
EPS $1.31 $1.65 −20.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from ICU Medical, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.24 $1.65 33.1% Beat
Q1, 2020 $1.63 $1.81 11.3% Beat
Q4, 2019 $1.66 $1.94 16.9% Beat
Q3, 2019 $1.62 $1.65 2.1% Beat
Q2, 2019 $2.06 $1.99 −3.2% Missed
Q1, 2019 $2.17 $2.58 19.1% Beat
Q4, 2018 $1.80 $2.07 14.8% Beat
Q3, 2018 $1.51 $1.85 22.8% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 8.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 10, 2020 $177.70 $193.33 8.8% Increase
May 7, 2020 $217.16 $198.10 −8.8% Decline
February 27, 2020 $204.33 $195.81 −4.2% Decline
November 11, 2019 $167.21 $178.67 6.9% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.92, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.92 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

ICU Medical, Inc. is currently trading at $183.07/share, down −3.6% for the day. The company is trading at approximately 77.9% of its 52-week high of $236.50/share. The company’s stock price is down −5.3% since the last earnings report and down −4.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 46.12 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:ICUI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 46.46 and a forward P/E multiple of 29.17.

ICU Medical, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.73. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $183.07
P/E Ratio 46.5x
P/E Ratio (Fwd) 29.2x
PEG Ratio 0.6
Total Debt / Total Capital 4.9%
Levered Free Cash Flow $81.297 million
EV / EBITDA 15.2x

Finbox

ICU Medical, Inc. is a mid-cap stock with a market capitalization of $3.975 billion and a total enterprise value of $3.718 billion. The company operates in the Healthcare sector and the Healthcare Equipment & Supplies industry.

ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in vascular therapy and critical care applications worldwide. The company’s infusion therapy products include needlefree connector products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency connectors; SwabCap disinfecting caps; Tego hemodialysis connectors; NovaCath and SuperCath peripheral intravenous (IV) catheters; ClearGuard HD, an antimicrobial barrier cap for hemodialysis catheters; and ChemoLock and ChemoClave closed system transfer devices, as well as Diana hazardous drug compounding system for the preparation of hazardous drugs. It also provides IV therapy and diluents, including sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer’s, ringer’s, mannitol, sodium chloride/dextrose, and sterile water; and irrigation, such as sodium chloride irrigation, sterile water irrigation, physiologic solutions, ringer’s irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. In addition, the company offers infusion pumps under the Plum 360 and LifeCare PCA brands; Cogent 2-in-1 and CardioFlo hemodynamic monitoring systems; TDQ and OptiQ cardiac output monitoring catheters; TriOx venous oximetry catheters; Transpac blood pressure transducers; and SafeSet closed blood sampling and conservation systems. Further, it provides ICU Medical Mednet, an enterprise medication management platform that connects smart pumps to hospital’s electronic health records, asset tracking systems, and alarm notification platforms, as well as related professional services. The company sells its products to acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, such as clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is headquartered in San Clemente, California.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.