St. Jude Medical Profit Tops View, Boosts 2014 Outlook

(RTTNews) - Cardiovascular medical devices maker St. Jude Medical, Inc. (STJ) reported Wednesday a profit for the first quarter that increased from last year, reflecting lower charges and sales growth.

Adjusted earnings per share topped analysts' expectations by a penny, while quarterly revenues matched their estimates.

The company also provided earnings and revenue outlook for the second quarter, in line with Street view, and raised its earnings and revenue guidance for the full-year 2014.

"St. Jude Medical delivered a solid first quarter by meeting or exceeding our expectations in each of our technology platforms," Chairman, President and CEO Daniel Starks said in a statement.

The St. Paul, Minnesota-based company reported net earnings of $249 million or $0.86 per share for the first quarter, higher than $223 million or $0.78 per share in the year-ago quarter.

Excluding special items, adjusted net earnings for the quarter was $278 million or $0.96 per share, compared to $263 million or $0.92 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 2 percent to $1.36 billion from $1.34 billion in the same quarter last year, and matched twenty-one Wall Street analysts' consensus estimate of $1.36 billion. Revenues increased 4 percent after adjusting for the impact of unfavorable foreign currency.

Total cardiac rhythm management sales were $687 million, up 1 percent, with implantable cardioverter defibrillator sales growing 2 percent and pacemaker sales remaining flat with last year.

Atrial fibrillation product sales were $251 million, up 8 percent, while neuromodulation product sales remained flat with last year at $99 million.

Meanwhile. total cardiovascular sales, which primarily include vascular and structural heart products, declined 1 percent to $326 million from last year, with sales of vascular products increasing 1 percent, and structural heart product sales remaining flat with last year.

Looking ahead to the second quarter of fiscal 2014, the company expects adjusted net earnings in a range of $0.99 to $1.01 per share, on projected revenues between $1.38 billion and $1.46 billion. Analysts expect the company to report earnings of $1.00 per share for the quarter, on quarterly revenues of $1.44 billion.

For fiscal 2014, the company now expects adjusted net earnings in a range of $3.95 to $4.00 per share, on projected revenues between $5.61 billion and $5.76 billion, up from the prior adjusted earnings forecast of $3.94 to $3.99 per share and revenue guidance between $5.60 billion and $5.75 billion.

Street is currently looking for full-year 2014 earnings of $3.98 per share on annual revenues of $5.69 billion.

The company also said it expects to accelerate sales in the second half of 2014 as it has received four new CRM product approvals in the U.S.

"These results reinforce our confidence that we are on track to accelerate sales growth as our product mix shifts to faster growing markets and as we continue to launch new products that improve patient outcomes, ensure the highest quality and lower the costs of treating expensive epidemic diseases," Starks added.

STJ closed Tuesday's regular trading session at $63.22, down $0.42 on a volume of 2.96 million shares. In the past 52-week period, the stock has been trading in a range of $40.31 to $68.79.