ICU Medical, Inc. (NASDAQ:ICUI) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in ICU Medical, Inc. (NASDAQ:ICUI) had a good week, as its shares rose 7.4% to close at US$106 following the release of its quarterly results. Revenues of US$567m beat expectations by a respectable 2.3%, although statutory losses per share increased. ICU Medical lost US$1.63, which was 135% more than what the analysts had included in their models. 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. Losses are forecast to balloon 76% to US$4.28 per share. Before this latest report, the consensus had been expecting revenues of US$2.28b and US$1.90 per share in losses. So it's pretty clear the analysts have mixed opinions on ICU Medical even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

As a result, there was no major change to the consensus price target of US$142, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ICU Medical, with the most bullish analyst valuing it at US$161 and the most bearish at US$135 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. 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 1.7% growth on an annualised basis. This is compared to a historical growth rate of 16% 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 8.1% 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 most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ICU Medical. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on ICU Medical. Long-term earnings power is much more important than next year's profits. We have forecasts for ICU Medical going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for ICU Medical (1 is potentially serious!) that you should be aware 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.