Utah Medical Products (UTMD) Stock

UTMD reports a 5.2% EPS decline in Q3 2024, with revenues declining 20% due to reduced OEM and Filshie sales. Cost controls helped stabilize profit margins.

Utah Medical (UTMD) reports a 19.2% revenue decline in 2Q24, with EPS down 15.3% due to lower sales to major customers. Despite this, profit margins remained stable.

Explore why Zacks rates UTMD with a "Neutral" recommendation, being the first on Wall Street to initiate coverage on the stock. Learn about UTMD's financial stability, diverse product portfolio, and market opportunities, balanced against key challenges in the competitive medical device industry.

Utah Medical Products stock has dropped 14% and is at its lowest point this year due to ongoing lawsuits regarding its Filshie clip system. The lawsuits do pose a risk to UTMD's stock price, and a negative outcome could further impact the company's equity. Despite the risks, UTMD's long-term economics and attractive proposition in multiple markets are bullish features.

Utah Medical Products comes with high returns on capital and projected earnings growth into FY'25. The company has compounded earnings at a rate of 2.8x that of revenue since 2021. Net-net, reiterate buy, eyeing a long-term price target of $223 per share.