ICU Medical's 2017 Guidance Misses Expectations

By Maria Armental 

Medical-products company ICU Medical Inc., which had warned 2017 would be a "bumpy" year as it brings into the fold what had been its largest customer, on Wednesday gave financial projections that largely missed Wall Street targets.

Last month, the San Clemente, Calif. company bought Pfizer's global infusion therapy business, Hospira Infusion Systems, in a cash-and-stock deal that turned Pfizer into ICU Medical's largest shareholder.

On Wednesday, ICU Medical said it expects to make $3.55 to $3.90 a share in 2017 adjusted profit on $1.2 billion to $1.25 billion in revenue, compared with analysts' projected $3.97 a share on $1.31 billion in revenue.

In 2016, the company made $4.88 a share in adjusted profit on $379.4 million in sales.

The revenue surge is largely due to the Hospira acquisition.

The infusion therapy business, ICU Medical's main cash driver, reported a 6.1% revenue increase in the most recent period.

Over all, fourth-quarter profit surged to $9.5 million, or 54 cents a share. Excluding stock-based compensation, restructuring costs and other items, profit rose to $1.20 a share from 96 cents a year earlier.

Meanwhile, revenue rose 6% to $95.7 million.

Analysts surveyed by Thomson Reuters had expected $1.19 on $94.4 million in revenue.

Shares closed Wednesday at $152.30, up nearly two-thirds over the past 12 months.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

March 01, 2017 16:53 ET (21:53 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.