ICU Medical Earnings: Solid First Quarter Buoyed by Strong Hospital Admissions

Narrow-moat ICU Medical posted solid first-quarter results buoyed by strong healthcare utilization in the U.S. and a somewhat favorable comparison period in the pumps business. Overall, the company looks on track to meet (or even exceed) our 2023 expectations, and we retain our long-term optimism on margins once the Smiths business turns around and certain infrastructure integrations are completed. At first glance, we do not expect to change our fair value estimate of $195 per share based on this announcement.