ICU Medical Inc. (ICUI) stock plummeted 5.04% in Friday's intraday trading session, significantly underperforming the broader market. The medical device company's share price decline came after it provided a disappointing earnings outlook for 2025 in its Q4 2024 earnings call.
According to the earnings transcript, ICU Medical expects its adjusted earnings per share (EPS) for 2025 to range between $6.55 and $7.25, falling short of analyst expectations. The company cited several factors contributing to the weaker-than-anticipated earnings guidance, including higher interest expenses, increased labor costs at its Mexican plants, and the impact of the new global minimum tax on its Costa Rica operations.
Furthermore, ICU Medical announced that it is deconsolidating its IV Solutions business into a joint venture with Otsuka Pharmaceutical Factory, set to close in Q2 2025. While the move is expected to improve the company's gross margins in the long run, the deconsolidation will result in a reduction of $350 million in adjusted revenue and $25 million in adjusted EBITDA for the year.
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