St. Jude Medical Q4 Results Meet Estimates, But Issues Weak Outlook

(RTTNews) - Cardiovascular medical devices maker St. Jude Medical, Inc. (STJ) reported Wednesday a profit for the fourth quarter that doubled from last year, reflecting lower charges and sales growth. Both adjusted earnings per share and quarterly net sales matched analysts' expectations.

The company also provided earnings and sales outlook for the first quarter and full-year 2015, both below Street view.

"We're delivering on our commitment to improving patient outcomes and reducing the economic burden of conditions such as heart failure, atrial fibrillation and chronic pain," Chairman, President and CEO Daniel Starks said.

The St. Paul, Minnesota-based company reported net earnings of $245 million or $0.84 per share for the fourth quarter, higher than $123 million or $0.42 per share in the year-ago quarter.

Results for the latest quarter primarily include restructuring charges of $0.08 per share, while the year-ago quarter included $0.33 per share of the same.

Excluding special items, adjusted net earnings for the quarter was $298 million or $1.03 per share, compared to $294 million or $0.99 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up 1 percent to $1.44 billion from $1.42 billion in the same quarter last year, and matched twenty-two Wall Street analysts' consensus estimate of $1.44 billion. Revenues increased 5 percent after adjusting for the impact of foreign currency.

Total cardiac rhythm management sales were $685 million, down 3 percent, with implantable cardioverter defibrillator sales slipping 4 percent and pacemaker sales declining 2 from last year.

Meanwhile, atrial fibrillation product sales grew 12 percent to $283 million, and neuromodulation product sales increased 8 percent from to $124 million.

Total cardiovascular sales, which primarily include vascular and structural heart products, also declined 1 percent to $347 million from last year, with sales of vascular products increasing 3 percent, and structural heart product sales decreasing 5 percent from last year.

Looking ahead to the first quarter of fiscal 2015, the company expects adjusted net earnings in a range of $0.90 to $0.92 per share, on projected revenue growth between $1.305 billion and $1.32 billion. Analysts expect the company to report earnings of $0.97 per share for the quarter, on quarterly revenue growth of 0.8 percent to $1.37 billion.

For fiscal 2015, the company expects adjusted net earnings in a range of $3.95 to $4.00 per share, on projected revenue growth between $5.45 billion and $5.55 billion. Street is currently looking for full-year 2015 earnings of $4.13 per share on annual revenue growth of 1.7 percent to $5.72 billion.

"Our product portfolio positions us well and provides competitive advantage for St. Jude Medical to accelerate sales growth and drive EPS leverage on a constant currency basis in 2015," Starks added.

STJ closed Tuesday's regular trading session at $66.63, up $0.99 on a volume of 2.84 million shares. In the past 52-week period, the stock has been trading in a range of $54.80 to $71.90.