St. Jude Medical Q1 Profit Rises; Updates FY15 Outlook - Quick Facts

(RTTNews) - Cardiovascular medical devices maker St. Jude Medical, Inc. (STJ) reported that its net earnings for the first quarter of 2015 rose to $262 million or $0.91 per share, from $249 million or $0.86 per share in the first quarter of 2014.

In the first quarter the Company recognized net after-tax credits of $17 million, or $0.06 per diluted share, primarily related to acquisition-related adjustments. Reported results also include the $16 million after-tax impact, or $0.06 per share, of amortization of intangible assets.

In accordance with GAAP, reported net earnings for the first quarter 2015 do not include any benefit from the federal research and development tax credit, which has yet to be extended for 2015. Including the benefit of this adjustment and excluding the first quarter credits and intangible amortization expense, adjusted net earnings for the first quarter of 2015 were $266 million, or $0.93 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net sales were $1.345 billion in the first quarter of 2015, a 1 percent decrease compared to net sales of $1.363 billion in the first quarter of 2014. On a constant currency basis, net sales increased by approximately 5 percent compared to the first quarter of 2014. Wall Street expected revenues of $1.32 billion.

For the second quarter, St. Jude Medical expects revenue to grow in the range of 4 percent to 5 percent on a constant currency basis compared to the second quarter of 2014 with currency negatively impacting second quarter revenue by approximately $125 million to $135 million. The company expects its consolidated adjusted net earnings for the second quarter of 2015 to be in the range of $0.99 to $1.01 per share. Analysts expect the company to report earnings of $0.99 per share and revenues of $1.40 billion for the second-quarter.

For the full-year 2015, the company now expects total revenue to grow in the range of 4 percent to 5 percent on a constant currency basis with currency negatively impacting full-year 2015 revenue by approximately $385 million to $410 million. Consolidated adjusted net earnings is expected to be in the range of $3.92 to $3.97 for full-year 2015. Wall Street currently is looking for fiscal year 2015 earnings of $3.95 per share on annual revenues of $5.52 billion.

The company said in January that it expected consolidated adjusted net earnings for fiscal 2015 to be in the range of $3.95 to $4.00 per share and revenue to grow in the range of 3 percent to 5 percent on a constant currency basis with currency negatively impacting full-year 2015 revenue by approximately $325 million to $350 million.