Shares of Utah Medical Merchandise, Inc. UTMD have declined 4.6% because the firm reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.5% progress over the identical time-frame. Over the previous month, the inventory has declined 0.4% in contrast with the S&P 500’s 2.8% progress.
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For the fourth quarter of 2024, Utah Medical reported earnings per share (EPS) of 86 cents, representing a 27.4% lower from $1.18 within the fourth quarter of 2023.
Complete revenues of $9.2 million mirrored a 25.8% decline from $12.3 million within the year-ago quarter. The lower was pushed by weaker gross sales throughout key product classes, together with a major drop in revenues from PendoTECH OEM gross sales and decrease gross sales to outside-the-U.S. (OUS) distributors.
Internet revenue for the quarter was $2.9 million, down 32.3% from $4.3 million in the identical interval final 12 months.
For the total 12 months, Utah Medical reported revenues of $40.9 million, an 18.6% decline from $50.2 million in 2023. Internet revenue for 2024 fell 16.6% to $13.9 million from $16.6 million, whereas EPS dropped 13.4% to $3.96 from $4.57.
Utah Medical Merchandise, Inc. Value, Consensus and EPS Shock
Utah Medical Products, Inc. price-consensus-eps-surprise-chart | Utah Medical Merchandise, Inc. Quote
Key Enterprise Metrics for UTMD
Regardless of the decline in revenues, Utah Medical maintained comparatively secure gross revenue margins. The fourth-quarter gross margin was 58.1%, barely increased than 57.6% the prior-year interval. Full-year gross margin stood at 59%, down barely from 59.8% in 2023.
Working revenue for the fourth quarter declined 25.7% 12 months over 12 months to $2.9 million, whereas full-year working revenue fell 19% to $13.6 million.
Money and investments totaled $83 million as of Dec. 31, 2024, down from $92.9 million a 12 months earlier.
Administration Commentary for UTMD
The corporate attributed the income decline to 3 main components: a $5.9 million drop in PendoTECH gross sales, decrease OUS distributor gross sales, and a 12% decline in worldwide Filshie Clip System gadget gross sales.
Regardless of further cost-of-living changes for workers and ongoing inflation in uncooked materials prices, Utah Medical managed to maintain its revenue margins by effectivity measures, together with workforce reductions and the closure of a second manufacturing shift in Utah.
Elements Influencing UTMD’s Outcomes
A big contributor to the income decline was a pointy discount in orders from PendoTECH, which accounted for 64% of the full income drop. The corporate additionally skilled a $2.1 million lower in OUS distributor gross sales, primarily on account of diminished shipments of blood strain monitoring kits to China. Filshie Clip System gross sales had been down 12%, with declines throughout each home and OUS markets.
As well as, Utah Medical confronted increased litigation bills, elevated wage prices and the affect of a newly launched excise tax on share repurchases. Non-operating revenue was decrease 12 months over 12 months, primarily because of the absence of rental revenue in Eire, which had contributed considerably in 2023.
UTMD’s Steering
Administration expects complete worldwide revenues to say no once more in 2025, although at a decrease price than in 2024. Whereas PendoTECH gross sales are projected to say no additional, the corporate anticipates a slight rebound in OUS distributor gross sales and Filshie gadget revenues.
Different Developments for UTMD
Throughout 2024, Utah Medical repurchased greater than 301,000 shares at a mean value of $66.13 per share, totaling practically $20 million. The corporate additionally elevated its quarterly dividend to 30.5 cents per share, efficient January 2025.
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