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Utah Medical's EPS Declines 27% Y/Y in Q4, Stock Drops 5%
UTMDUtah Medical Products(UTMD) ZACKS·2025-01-31 17:51

Core Viewpoint - Utah Medical Products, Inc. (UTMD) experienced a significant decline in earnings and revenues for the fourth quarter and full year of 2024, leading to a drop in stock price despite stable gross profit margins. Financial Performance - For Q4 2024, UTMD reported earnings per share (EPS) of 86 cents, a 27.4% decrease from 1.18inQ42023[2]−TotalrevenuesforQ4were1.18 in Q4 2023 [2] - Total revenues for Q4 were 9.2 million, down 25.8% from 12.3millioninthesamequarterlastyear[3]−NetincomeforQ4was12.3 million in the same quarter last year [3] - Net income for Q4 was 2.9 million, a decline of 32.3% from 4.3millioninthepreviousyear[3]−Full−yearrevenueswere4.3 million in the previous year [3] - Full-year revenues were 40.9 million, an 18.6% decline from 50.2millionin2023[4]−Full−yearnetincomefell16.650.2 million in 2023 [4] - Full-year net income fell 16.6% to 13.9 million from 16.6million,withEPSdropping13.416.6 million, with EPS dropping 13.4% to 3.96 from 4.57[4]KeyBusinessMetrics−ThegrossmarginforQ4was58.14.57 [4] Key Business Metrics - The gross margin for Q4 was 58.1%, slightly up from 57.6% in the prior-year period, while the full-year gross margin was 59%, down from 59.8% in 2023 [5] - Operating income for Q4 declined 25.7% year over year to 2.9 million, and full-year operating income fell 19% to 13.6million[5]−Cashandinvestmentstotaled13.6 million [5] - Cash and investments totaled 83 million as of Dec. 31, 2024, down from 92.9millionayearearlier[6]RevenueDeclineFactors−Therevenuedeclinewasattributedtoa92.9 million a year earlier [6] Revenue Decline Factors - The revenue decline was attributed to a 5.9 million drop in PendoTECH sales, lower sales to outside-the-U.S. (OUS) distributors, and a 12% decline in worldwide Filshie Clip System device sales [7] - PendoTECH accounted for 64% of the total revenue drop, with a 2.1milliondecreaseinOUSdistributorsalesprimarilyduetoreducedshipmentstoChina[8]ManagementCommentaryandGuidance−Managementexpectstotalworldwiderevenuestodeclineagainin2025,thoughatalowerratethanin2024,withfurtherdeclinesinPendoTECHsalesbutaslightreboundanticipatedinOUSdistributorsalesandFilshiedevicerevenues[10]ShareholderReturns−During2024,thecompanyrepurchasedover301,000sharesatanaveragepriceof2.1 million decrease in OUS distributor sales primarily due to reduced shipments to China [8] Management Commentary and Guidance - Management expects total worldwide revenues to decline again in 2025, though at a lower rate than in 2024, with further declines in PendoTECH sales but a slight rebound anticipated in OUS distributor sales and Filshie device revenues [10] Shareholder Returns - During 2024, the company repurchased over 301,000 shares at an average price of 66.13 per share, totaling nearly $20 million [11] - The quarterly dividend was increased to 30.5 cents per share, effective January 2025 [11]