Shares of ICU Medical Inc., a San Clemente medical device maker, fell Tuesday on analysts’ concerns about rising costs and falling profits.
ICU’s shares were down 17% in late afternoon Nasdaq trading with a market value of $430 million.
The company’s shares fell despite posting fourth-quarter financial results Monday that beat profit expectations and sales were in line.
During a conference call, analysts raised questions about rising costs and a cautious profit outlook for 2008,
Mitra Ramgopal of Sidoti & Co.said he was concerned about ICU’s 2008 profit guidance, saying its $20.8 million forecast was “still well below where you were two years ago.”
Chief Executive George Lopez said that ICU’s added some 20 new salespeople as it plans to launch devices for the cancer treatment market.
It would take time to get ICU’s new products established and contributing to profits, he said.
ICU, which makes intravenous connection devices, said its sales came in at $45.5 million in the quarter ended Dec. 31, down 10% from a year ago. ICU’s revenue was in line with Wall Street expectations.
Profits came in at $6 million, down 13% but beating expectations. Analysts expected ICU to make $5.5 million in the quarter.
In a release, Chief Financial Officer Francis O’Brien said the company’s performance was affected by a double-digit decline in critical care products that it sells to Hospira Inc. Hospira, which is based in suburban Chicago, is ICU’s major customer.
