Utah Medical Products ( (UTMD) ) has released its Q4 earnings. Here is a breakdown of the information Utah Medical Products presented to its investors.
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Utah Medical Products, Inc., a company specializing in the development and manufacturing of medical devices for women’s and neonatal health care, faced a challenging financial year in 2024, marked by a significant decline in key financial metrics. Despite maintaining stable profit margins, the company’s revenues fell by 19% compared to 2023, resulting in a 17% reduction in net income and a 13% decrease in earnings per share. This downturn was reflected in a 27% drop in the company’s stock price.
The financial report highlighted several key factors contributing to the decline, including a $9.3 million reduction in consolidated worldwide revenues. Significant decreases were noted in PendoTECH OEM sales, OUS distributor sales, and worldwide Filshie device sales. Notably, sales to the China distributor for blood pressure monitoring kits dropped sharply, contributing to lower overall sales.
In an effort to bolster its financial position, Utah Medical Products repurchased over 8% of its shares during the year, utilizing its robust cash reserves. The company managed to sustain its operating income margin by offsetting some cost increases with reduced manufacturing personnel and closing the second production shift in Utah. Despite these challenges, the company maintains a strong balance sheet, with cash and investments totaling $83 million at year-end.
Looking ahead, Utah Medical Products anticipates further revenue declines in 2025, projecting low to mid-single-digit percentage reductions compared to 2024. However, the company expects some recovery in specific areas, such as OUS distributor orders and Filshie device sales, buoyed by anticipated regulatory approvals and existing order backlogs.
