ICU Medical Beats on EPS But GAAP Results Lag

ICU Medical (Nasdaq: ICUI  ) reported earnings on Feb. 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ICU Medical met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
ICU Medical reported revenue of $82.7 million. The five analysts polled by S&P Capital IQ expected to see revenue of $82.7 million on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $76.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.82. The three earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $0.82 for Q4 were 35% lower than the prior-year quarter's $1.26 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.5%, 440 basis points better than the prior-year quarter. Operating margin was 22.8%, 880 basis points better than the prior-year quarter. Net margin was 14.9%, 840 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $80.7 million. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $339.2 million. The average EPS estimate is $2.93.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 85 members out of 98 rating the stock outperform, and 13 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give ICU Medical a green thumbs-up, and two 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 $68.60.

Looking for alternatives to ICU Medical? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

• Add ICU Medical to My Watchlist.