01.14.14
St. Jude Medical Inc. reported gains for the final quarter of the 2013 fiscal year (Q4 ended Dec. 28).
The company expects to report net sales of approximately $1.42 billion for the fourth quarter of 2013, a 4 percent increase over net sales of $1.37 billion in the fourth quarter of 2012. On a currency neutral basis, net sales increased by approximately 6 percent from the fourth quarter of 2012.
"At the start of 2013, we talked about our plan to accelerate sales throughout the year. St. Jude Medical delivered on that plan each quarter of 2013,” said Daniel Starks, chairman, predident and CEO of the St. Paul, Minn.-based firm. “Sales improved from a decline in the first quarter of 2013 to growth at a mid-single digit rate in the fourth quarter of 2013. This broad-based improvement in sales growth can be attributed to encouraging market dynamics and the launch of new products in each of our businesses."
For the Cardiac Rhythm Management (CRM) division, Q4 sales were approximately $705 million, a 3 percent increase compared with the fourth quarter of 2012. Total CRM sales for the fourth quarter increased 5 percent after adjusting for the impact of foreign currency. Of that total, implantable cardiac defibrillator (ICD) sales were $442 million in the fourth quarter, a 5 percent increase compared to the fourth quarter of 2012 on a reported and constant currency basis. Fourth-quarter pacemaker sales were $263 million, a 1 percent increase compared to the fourth quarter of 2012. On a constant currency basis, pacemaker revenue increased 4 percent, the company reported.
Atrial Fibrillation (AF) division product sales for the fourth quarter were approximately $252 million, an increase of 5 percent over the fourth quarter of 2012. On a constant currency basis, total AF sales for the fourth quarter increased 8 percent.
Cardiovascular unit sales, which primarily include vascular and structural heart products, were $350 million for the fourth quarter of 2013, a 4 percent increase compared with the fourth quarter of 2012. On a constant currency basis, cardiovascular sales increased 7 percent compared to the fourth quarter of 2012. Sales of vascular products in the fourth quarter of 2013 were $183 million, representing a 2 percent decrease from the fourth quarter of 2012. Vascular product sales increased 2 percent on a constant currency basis over the fourth quarter of 2012. Structural heart product sales for the fourth quarter of 2013 were $167 million, a 10 percent increase compared with the fourth quarter of 2012. On a constant currency basis, structural heart sales increased 12 percent from the fourth quarter of 2012.
Sales for the Neuromodulation division were approximately $115 million, a 2 percent increase from the prior year on a reported and constant currency basis.
St. Jude officials now project that fourth-quarter adjusted earnings per share will be in the range of 97 to 99 cents, an increase of 2 cents to both the bottom and top end of the company’s previously issued guidance range. Adjusted earnings per share for the fourth quarter excludes after-tax charges totaling approximately 55 per share, primarily related to ongoing restructuring actions and certain other corporate charges.
Sales were helped by helped by new product launches and an improvement in the market for medical devices, officials noted. Analysts expected earnings of 96 cents per share and revenue of $1.38 billion, according to Thomson Reuters. The company is due to fully report earnings on Jan. 22.
St. Jude, which competes against other industry giants such as Medtronic Inc. and Boston Scientific Inc. in the implantable cardioverter defibrillators (ICD) sector, had lost market share due to ongoing industry, clinical and regulatory concern about problems with the lead wires that connect ICDs to the heart.
The company expects to report net sales of approximately $1.42 billion for the fourth quarter of 2013, a 4 percent increase over net sales of $1.37 billion in the fourth quarter of 2012. On a currency neutral basis, net sales increased by approximately 6 percent from the fourth quarter of 2012.
"At the start of 2013, we talked about our plan to accelerate sales throughout the year. St. Jude Medical delivered on that plan each quarter of 2013,” said Daniel Starks, chairman, predident and CEO of the St. Paul, Minn.-based firm. “Sales improved from a decline in the first quarter of 2013 to growth at a mid-single digit rate in the fourth quarter of 2013. This broad-based improvement in sales growth can be attributed to encouraging market dynamics and the launch of new products in each of our businesses."
For the Cardiac Rhythm Management (CRM) division, Q4 sales were approximately $705 million, a 3 percent increase compared with the fourth quarter of 2012. Total CRM sales for the fourth quarter increased 5 percent after adjusting for the impact of foreign currency. Of that total, implantable cardiac defibrillator (ICD) sales were $442 million in the fourth quarter, a 5 percent increase compared to the fourth quarter of 2012 on a reported and constant currency basis. Fourth-quarter pacemaker sales were $263 million, a 1 percent increase compared to the fourth quarter of 2012. On a constant currency basis, pacemaker revenue increased 4 percent, the company reported.
Atrial Fibrillation (AF) division product sales for the fourth quarter were approximately $252 million, an increase of 5 percent over the fourth quarter of 2012. On a constant currency basis, total AF sales for the fourth quarter increased 8 percent.
Cardiovascular unit sales, which primarily include vascular and structural heart products, were $350 million for the fourth quarter of 2013, a 4 percent increase compared with the fourth quarter of 2012. On a constant currency basis, cardiovascular sales increased 7 percent compared to the fourth quarter of 2012. Sales of vascular products in the fourth quarter of 2013 were $183 million, representing a 2 percent decrease from the fourth quarter of 2012. Vascular product sales increased 2 percent on a constant currency basis over the fourth quarter of 2012. Structural heart product sales for the fourth quarter of 2013 were $167 million, a 10 percent increase compared with the fourth quarter of 2012. On a constant currency basis, structural heart sales increased 12 percent from the fourth quarter of 2012.
Sales for the Neuromodulation division were approximately $115 million, a 2 percent increase from the prior year on a reported and constant currency basis.
St. Jude officials now project that fourth-quarter adjusted earnings per share will be in the range of 97 to 99 cents, an increase of 2 cents to both the bottom and top end of the company’s previously issued guidance range. Adjusted earnings per share for the fourth quarter excludes after-tax charges totaling approximately 55 per share, primarily related to ongoing restructuring actions and certain other corporate charges.
Sales were helped by helped by new product launches and an improvement in the market for medical devices, officials noted. Analysts expected earnings of 96 cents per share and revenue of $1.38 billion, according to Thomson Reuters. The company is due to fully report earnings on Jan. 22.
St. Jude, which competes against other industry giants such as Medtronic Inc. and Boston Scientific Inc. in the implantable cardioverter defibrillators (ICD) sector, had lost market share due to ongoing industry, clinical and regulatory concern about problems with the lead wires that connect ICDs to the heart.
