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Mar 31, 2021
Utah Medical Q1 2021 Earnings Report
Worldwide sales, gross profits, and operating profits increased compared to Q1 2020, despite weak demand in January 2021 due to renewed lockdowns.
Key Takeaways
Utah Medical Products reported a slight increase in revenue and gross profit for Q1 2021 compared to Q1 2020. Despite increased operating income, net income and earnings per share decreased due to lower non-operating income and a higher tax rate. The balance sheet continued to strengthen, with increased cash and investments.
Total consolidated worldwide sales were slightly higher, increasing by 0.6% compared to Q1 2020.
Gross profit increased by 1.6% due to slightly higher sales and an expansion in gross profit margin.
Operating income saw a marginal increase of 0.6% compared to the same period last year.
Earnings per share decreased by 1.9% due to a higher estimated consolidated income tax provision rate, partially offset by share repurchases during 2020.
Revenue by Segment
Forward Guidance
Management expects 2Q 2021 consolidated revenues may be 25% higher than in 2Q 2020, leading to perhaps 8% higher sales for the year 2021. The actual results depend on the recovery of elective procedures and patient confidence in going to the hospital.
Positive Outlook
- Anticipated revenue increase for 2Q 2021.
- Potential for higher sales for the year 2021.
- Possible recovery of elective procedures.
- Potential increase in patient confidence in visiting hospitals.
- Strong desire and financial ability for repurchasing its shares
Challenges Ahead
- Uncertainty regarding the timing of hospital elective procedure recovery.
- Dependence on patient confidence in returning to hospitals.
- Global economic conditions
- Market acceptance of products
Historical Earnings Impact
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Avg. Return Before/After Earnings
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