ICU Medical’s first-quarter results were met with a negative market reaction despite outperforming Wall Street’s revenue and profit expectations. Management attributed the quarter’s performance to strong growth across all business segments, highlighting accelerated demand in oncology and home infusion markets within consumables. CEO Vivek Jain acknowledged, “our consumables business grew in Q1 by 10% constant currency and 9% reported,” citing new global customer implementations and favorable pricing. However, management was transparent about one-off factors, such as the end of the IV Solutions shortage, and cautioned that the pace of growth may not persist into the next quarter.
Is now the time to buy ICUI? Find out in our full research report (it’s free).
ICU Medical (ICUI) Q1 CY2025 Highlights:
- Revenue: $599.5 million vs analyst estimates of $567.2 million (5.8% year-on-year growth, 5.7% beat)
- Adjusted EPS: $1.72 vs analyst estimates of $1.28 (34.4% beat)
- Adjusted EBITDA: $99.43 million vs analyst estimates of $88.48 million (16.6% margin, 12.4% beat)
- Operating Margin: 4.9%, up from 1% in the same quarter last year
- Market Capitalization: $3.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions ICU Medical’s Q1 Earnings Call
- Jayson Bedford (Raymond James) asked about the drivers behind consumables growth. CEO Vivek Jain pointed to oncology and home infusion markets, with pricing improvements contributing but not dominating the growth mix.
- Brett Fishbin (KeyBanc Capital Markets) pressed on tariff exposure by geography. CFO Brian Bonnell clarified that Mexico-related risk had lessened due to USMCA exemptions, while Costa Rica was now the most significant exposure.
- Larry Solow (CJS Securities) inquired about the timeline and customer response to the new Plum infusion pumps. Jain explained that while interest was high, adoption would ramp as installed devices reach end-of-life and customers prioritize upgrades.
- Michael Toomey (Jefferies) questioned whether infusion system growth reflected share gains or market trends. Jain responded that growth was due to strong utilization and some early hardware installations, rather than significant market share shifts yet.
- Joseph Conway (Jefferies) asked about marketing strategies for PlumSolo and PlumDuo and the regulatory path for pending pump clearances. Jain emphasized differentiated features and cautioned against extrapolating regulatory timelines from past filings.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will monitor (1) the pace of PlumSolo and PlumDuo infusion pump adoption as the upgrade cycle accelerates, (2) the effectiveness of tariff mitigation strategies and their impact on margins, and (3) progress toward regulatory clearances for MedFusion and CAD pumps. Developments in the Otsuka joint venture and field remediation efforts will also be important to track.
ICU Medical currently trades at $132.15, down from $142.87 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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