Cardiovascular medical devices maker St. Jude Medical, Inc. (STJ: Quote) reported Wednesday a profit for the second quarter that edged up from last year, driven mainly by lower restructuring charges.
Sales of the company's cardiac rhthym management treatment tailed off, but revenues from atrial fibrillation and neuromodulation products helped the bottom line.
Adjusted earnings per share topped analysts' expectations by a penny, while quarterly revenues missed their estimates by a whisker. The company also provided earnings outlook for the third quarter, just below Street view, and trimmed earnings guidance range for the full-year 2012.
"All of St. Jude Medical's second quarter results fell within our previously announced guidance ranges. We continued to make good progress during the quarter implementing new product programs designed to accelerate our growth in 2013," Chairman, President and CEO Daniel Starks said in a statement.
The St. Paul, Minnesota-based company reported net earnings of $244 million or $0.78 per share for the second quarter, higher than $241 million or $0.72 per share in the year-ago quarter.
Excluding special items, adjusted net earnings for the quarter was $276 million or $0.88 per share, compared to $283 million or $0.85 per share in the year-ago quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.87 per share for the second quarter. Analysts' estimates typically exclude special items. The company was projecting adjusting earnings of $0.86 to $0.88 per share.
Net sales for the quarter decreased 2 percent $1.41 billion from $1.45 billion in the same quarter last year, and missed twenty-two Wall Street analysts' consensus estimate of $1.43 billion by a whisker. However, revenues increased 1 percent after adjusting for the impact of foreign currency.
Total cardiac rhythm management sales were $746 million, down 6 percent, with implantable cardioverter defibrillator sales dropping 4 percent and pacemaker sales declining 9 percent from last year.
Atrial fibrillation product sales were $218 million, up 5 percent, while neuromodulation product sales grew 2 percent to $106 million from last year.
Total cardiovascular sales, which primarily include vascular and structural heart products, were down 1 percent to $340 million from the year-ago quarter, with sales of vascular products declining 5 percent, while structural heart product sales grew 5 percent from last year.
"We are focused on delivering innovative medical devices that both improve patient outcomes and reduce the cost of health care," Starks added.
Looking ahead to the third quarter of fiscal 2011, the company expects consolidated adjusted net earnings in the range of $0.80 to $0.82 per share. Analysts expect the company to report earnings of $0.83 per share for the quarter.
For fiscal 2012, the company also trimmed its consolidated adjusted net earnings guidance to a range of $3.40 and $3.45 per share from the previous forecast of $3.44 to $3.49 per share. Street is looking for full-year 2012 earnings of $3.46 per share.
STJ closed Tuesday's regular trading session at $39.24, up $0.48 on a volume of 2.05 million shares, lower than the three-month average volume of 3.41 million shares. In the past 52-week period, the stock has been trading in a range of $32.13 to $49.79.
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by RTT Staff Writer
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