ICU Medical Inc. Chief Executive Vivek Jain said the company’s second-quarter results were “generally in line with our expectations.”
However, it wasn’t what Wall Street was expecting.
Second-quarter revenue grew 8.6% to $596.5 million, topping analysts’ consensus of about $555 million. Adjusted earnings were $1.56 a share, beating the Zacks Consensus Estimate for 98 cents a share. It boosted its annual adjusted profit forecast from $4.40 to $5.10 to $4.95 to $5.35.
Shares in ICU Medical rose 24% to $151.35 in the session after the announcement. Shares were around $158.73 each and a $3.9 billion market time at press time (Nasdaq: ICUI).
Analysts say ICU Medical Inc.’s second-quarter performance marks the beginning of a potential inflection point for the San Clemente-based supplier of infusion therapy-related medical equipment.
“We do not model this level of growth going forward, but the business is clearly gaining momentum and the (raised) guidance should prove conservative,” Piper Sandler analyst Jayson Bednar wrote in a note to investors.
The company experienced growth across all segments, with its consumables business growing the most at 11% to $261.8 million, consisting of nearly half of the company’s sales. A key factor of this growth has been ICU Medical’s focus on adjacent market creation, particularly in the renal care space since its acquisition of Pursuit Vascular, according to Jain.
ICU Medical acquired the company, which specializes in catheter disinfecting products and technologies, for $75 million in 2019.
Jain said ICU Medical recently signed a multiyear contract with a “leading U.S. operator of dialysis clinics” and believes it’ll help the company continue to push into the renal space.
ICU Medical most recently launched its Plum Duo infusion pump, which gained FDA approval last August.
The device features a touch screen with a user interface and two channels capable of delivering up to four compatible IV medications with Lifeshield infusion software.
The company has since filed 510(k) submissions for a single channel version of the existing device dubbed “Plum Solo,” as well as enhancements to Plum Duo and the Lifeshield software. It also expects to submit a 510(k) for its Medfusion syringe pump within “the next several quarters.”
ICU Medical also operates in China, where a majority of its portfolio is not yet approved. Jain said the company is working to register additional core infusion products to expand its portfolio overseas.
