Medical appliances and equipment company St. Jude Medical Inc. (STJ), Wednesday, reported a profit for the fourth quarter of fiscal 2009, compared with a loss last year, reflecting much lower charges on special items. On an adjusted basis, the company's earnings rose year-on-year, driven by higher sales across all its business segments. The St. Paul, Minnesota-based company also provided an earnings outlook for the first quarter and fiscal 2010.
The company reported fourth-quarter net profit of $189.65 million, or $0.57 per share, compared with a net loss of $201.16 million, or $0.58 per share, in the year-ago quarter.
St. Jude Medical had special charges totaling $23.94 million or $0.07 per share in this year's fourth quarter, much lower than $404.18 million or $1.16 per share recorded last year. The prior-year quarter included $319.35 million purchased R&D charges, or $0.92 per share, primarily associated with the company's acquisition of MediGuide, Inc.
Excluding special items, net earnings were $213.59 million or $0.64 per share, up from $203.03 million or $0.58 per share in the prior-year quarter.
On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.
St. Jude's net sales rose 6% in the fourth quarter to $1.20 billion from $1.13 billion in the same period last year. Analysts projected quarterly revenues of $1.20 billion.
The company said the fourth quarter of 2009 had one fewer week of sales compared to the year-ago period. Foreign currency translation effects increased fourth-quarter sales by approximately $50 million.
For the preceding third quarter, the company posted net earnings of $166.94 million or $0.48 per share and net sales of $1.16 billion.
Business segment wise, Cardiac Rhythm Management, or CRM, sales, which include implantable cardioverter defibrillator, or ICD, and pacemaker products, had revenues in the fourth quarter of $698 million, up 3% from the fourth quarter of 2008. After adjusting for the impact of foreign currency, total CRM sales decreased 1%.
ICD product sales were up 2% to $395 million, but decreased 1% after adjusting for the impact of foreign currency. Fourth-quarter pacemaker sales were $303 million, an increase of 3% from last year. After adjusting for the impact of foreign currency, pacemaker sales edged down 1%.
Further, St. Jude Medical stated that sales at Atrial Fibrillation, or AF, totaled $171 million, up 10% from the fourth quarter of 2008. AF sales rose 4% after adjusting for the impact of foreign currency.
The company also reported Neuromodulation products sales of $94 million, 21% higher than the year-ago quarter. On a constant currency basis, neuromodulation product sales increased 18% year-over-year.
In the fourth quarter, total Cardiovascular sales, which mainly include vascular closure and heart valve products, reached $240 million, up 10% from the prior-year quarter. After adjusting for the impact of foreign currency, total cardiovascular sales increased 4%. Sales of vascular closure products were $94 million, a 2% increase year-over-year. Total heart valve product sales remained flat at $79 million.
For fiscal 2009, St. Jude Medical earned $777.23 million or $2.26 per share, up from $353.02 million or $1.01 per share in fiscal 2008. Adjusted net earnings rose to $838.21 million or $2.43 per share from $775.31 million or $2.22 per share last year.
Full-year net sales totaled $4.68 billion, 7% higher than $4.36 billion a year ago. Foreign currency translation comparisons decreased the company's full-year sales by about $99 million. On a currency neutral basis, net sales grew 10% over the prior year.
Wall Street analysts projected earnings of $2.42 per share on sales of $4.67 billion.
Looking ahead, St. Jude Medical expects first-quarter consolidated earnings per share in the range of $0.66 - $0.68. The company's full-year 2010 earnings per share are projected to be between $2.71 and $2.76. Analysts estimate the company to report earnings per share of $0.65 for the first quarter and $2.71 for fiscal 2010.
Among others in the sector, Boston Scientific Corp. (BSX) is set to announce its results on February 10. Analysts are of the view that the company will earn $0.13 per share on sales of $2.08 billion.
Edwards Lifesciences Corp. (EW) is estimated to earn $0.85 per share when it reports fourth-quarter results on February 10. Analysts also predict sales of $432.98 million for the company.
STJ is trading at $37.29, down $0.50, on a volume of 1.58 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.