Utah Medical Products 2025 Q1 Earnings Net Income Falls 23.1%

Utah Medical Products (UTMD) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company's performance fell short of expectations, with significant declines in revenue and net income. The guidance suggests a continued revenue decline in the low to mid-single digits, indicating challenges ahead.

Revenue

Utah Medical Products experienced a 14.4% decrease in total revenue, reaching $9.71 million in 2025 Q1, down from $11.34 million the previous year. The Obstetrics segment generated $1.02 million, while Gynecology/Electrosurgery/Urology contributed $4.90 million. Neonatal segment sales amounted to $1.98 million, and Blood Pressure Monitoring and Accessories brought in $1.81 million. These figures combined to form the total revenue of the quarter.

Earnings/Net Income

Utah Medical Products saw its EPS decline by 15.6% to $0.92 in 2025 Q1 from $1.09 in 2024 Q1. Net income decreased to $3.04 million, down 23.1% from $3.96 million in the same quarter last year. The EPS decline reflects a challenging quarter for the company.

Price Action

The stock price of Utah Medical Products edged up by 0.15% during the latest trading day, increased by 1.82% over the most recent full trading week, and rose by 2.87% month-to-date.

Post-Earnings Price Action Review

Historically, Utah Medical Products (UTMD) has shown a tendency to experience a decline in stock price following earnings report releases. However, a strategy of purchasing shares after this initial drop and holding them for 30 days has proven to be effective over the past five years. This approach often capitalizes on the stock's ability to rebound and exceed its pre-earnings levels, as the market adjusts to earnings expectations. This pattern is driven by a combination of market adjustments and the stock's natural upward trend, which typically resumes once short-term concerns dissipate. Investors who are comfortable with short-term volatility have found success in holding UTMD for 30 days post-earnings, leveraging consistent dividend payments and a stable market presence for potential long-term gains. Overall, this strategy offers a balanced approach to risk and reward, making it an attractive option for investors.

CEO Commentary

Kevin Cornwell, CEO of Utah Medical Products, addressed the decline in sales, attributing a significant portion of the revenue decrease to reduced OEM sales to PendoTECH. He emphasized the company's focus on operational efficiency and cost reduction, particularly in litigation expenses. Cornwell expressed cautious optimism about the stabilization of Filshie device sales and expected recovery in domestic sales, highlighting the importance of strategic market positioning.

Guidance

Utah Medical Products forecasts a revenue decline in the low to mid-single digits for 2025 compared to 2024. While PendoTECH revenues may decrease by around $2 million, the company anticipates a slight increase in sales to its China distributor and a rebound in OUS distributor orders and Filshie device sales. The guidance underscores a focus on operational stability and market opportunities to support revenue recovery and enhance profitability.

Additional News

In recent weeks, Utah Medical Products announced a quarterly cash dividend of thirty and one-half cents per share, approved by its Board of Directors on May 6, 2025. The company continues to demonstrate confidence in its value through share repurchases and dividend payments, maintaining a robust financial position. Additionally, Utah Medical Products has faced challenging market conditions, including tariff impacts and geopolitical uncertainties, but remains focused on exploring new market opportunities and balancing liquidity to navigate these challenges effectively. The company's strategic initiatives aim to ensure operational effectiveness while managing inventory and overhead costs.