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Sep 30, 2020
Utah Medical Q3 2020 Earnings Report
Revenue decreased due to COVID-19 impact, but US domestic sales substantially recovered from Q2 2020.
Key Takeaways
Utah Medical Products reported a decrease in revenue for the third quarter of 2020 compared to the same period in 2019, primarily due to the impact of COVID-19 on medical procedures. However, U.S. domestic sales showed a substantial recovery from the previous quarter. The company's balance sheet remained strong with an absence of debt, and management focused on managing operating expenses while preserving resources for long-term growth.
Worldwide revenues decreased by 16.1% compared to Q3 2019.
Gross profit margin improved to 62.0% compared to 59.1% in Q3 2019.
Operating income decreased by 17.9% compared to Q3 2019.
Diluted EPS was $0.803 compared to $0.991 in Q3 2019.
Revenue by Geographic Location
Forward Guidance
Unless governments again restrict medical care, we see the recovery trend continuing to be positive, so that 4Q 2020 is likely to be UTMD’s best revenue quarter of the year.
Positive Outlook
- UTMD believes that the lower sales are transitory
- UTMD knows it can remain very profitable even at the lower sales levels experienced during the pandemic
- UTMD has a significant cash reserve relative to operational needs
- U.S. domestic sales substantially recovered from 2Q 2020
- Sales outside the U.S. (OUS) have been slower to recover, they nevertheless were significantly higher in 3Q 2020 than in the dismal 2Q 2020
Challenges Ahead
- Worldwide revenues decreased by 16.1% compared to Q3 2019
- Operating income decreased by 17.9% compared to Q3 2019
- Diluted EPS was $0.803 compared to $0.991 in Q3 2019
- Devices in the gynecology/ electrosurgery category were mostly classified as “nonessential” during the pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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