Actionable news
0
All posts from Actionable news
Actionable news in STJ: ST. JUDE MEDICAL Inc,

St. Jude Medical Reports Third Quarter 2015 Results

ST. PAUL, Minn.--(BUSINESS WIRE)--St. Jude Medical, Inc. (NYSE: STJ) today reported sales and net earnings for its third quarter ended October 3, 2015. The company announced on October 8, 2015, that it had completed its acquisition of Thoratec, which did not affect the operational results of the company’s third quarter.

“Third quarter results confirm that our innovation based growth program continues to gain traction. Now we are focused on efficiently integrating our acquisition of Thoratec and strengthening our entire portfolio of growth drivers for 2016.”

Tweet this

Third quarter 2015 highlights:

  • Net sales increased by approximately 6 percent on a constant currency basis compared to the prior year quarter
  • CardioMEMS™ HF System sales totaled approximately $20 million
  • Worldwide neuromodulation revenue increased by approximately 19 percent on a constant currency basis, marking the fifth consecutive quarter of sales acceleration on a year over year basis
  • St. Jude Medical’s global leadership position in heart failure was expanded through the acquisition of Thoratec, which generated $124 million in sales during its third quarter of 2015

Third Quarter 2015 Sales

The company reported net sales of $1.339 billion in the third quarter of 2015, a 2 percent decrease compared to net sales of $1.372 billion in the third quarter of 2014. On a constant currency basis, net sales increased by approximately 6 percent compared to the third quarter of 2014.

Commenting on the company’s financial results, St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Third quarter results confirm that our innovation based growth program continues to gain traction. Now we are focused on efficiently integrating our acquisition of Thoratec and strengthening our entire portfolio of growth drivers for 2016.”

Cardiac Rhythm Management (CRM)

Total CRM sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $630 million for the third quarter of 2015, an 8 percent decline compared to the prior year quarter. After adjusting for the impact of foreign currency, CRM sales decreased 1 percent compared to the prior year quarter.

Of that total, ICD product sales were $392 million in the third quarter, a 7 percent decline on a reported basis and decreased 1 percent on a constant currency basis compared to the prior year quarter.

Third quarter pacemaker sales were $238 million, a 10 percent decline compared to the prior year quarter. On a constant currency basis, pacemaker product sales decreased 1 percent compared to the prior year quarter.

Atrial Fibrillation (AF)

AF product sales for the third quarter totaled $271 million, a 7 percent increase compared to the prior year quarter. On a constant currency basis, AF product sales increased 17 percent compared to the prior year quarter.

Cardiovascular

Total cardiovascular sales, which primarily include structural heart and vascular products, were $317 million for the third quarter of 2015, a 2 percent decline compared to the prior year quarter. On a constant currency basis, cardiovascular sales increased 7 percent compared to the prior year quarter.

Structural heart product sales for the third quarter of 2015 were $141 million, up 1 percent on a constant currency basis compared to the prior year quarter.

Sales of vascular products in the third quarter of 2015 were $176 million, a 14 percent increase on a constant currency basis compared to the prior year quarter.

Neuromodulation

St. Jude Medical sales of neuromodulation products were $121 million in the third quarter of 2015, a 13 percent increase on a reported basis and a 19 percent increase on a constant currency basis compared to the prior year quarter.

Third Quarter Earnings Results

In the third quarter the company recognized net after-tax expenses of $43 million, or $0.15 per diluted share, primarily related to acquisition-related adjustments, discrete income tax expenses and ongoing restructuring activities. Including these items, reported net earnings for the third quarter of 2015 were $215 million or $0.75 per share, compared with reported net earnings for the third quarter of 2014 of $238 million or $0.82 per share. Reported results also include the $16 million after-tax impact, or $0.06 per diluted share, of amortization of intangible assets.

In accordance with GAAP, reported net earnings for the third 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 third quarter net expenses and intangible amortization expense, adjusted net earnings for the third quarter of 2015 were $277 million, or $0.97 per share. A reconciliation of the company’s non-GAAP adjusted results to the company’s GAAP reported results is provided in the schedules at the end of the press release.

Fourth Quarter and Full-Year 2015 Sales and Earnings Guidance

For the fourth quarter, the consolidated St. Jude Medical business, which now includes Thoratec, expects constant currency revenue growth in the range of 7 percent to 8 percent compared to the fourth quarter of 2014. Organic constant currency sales growth for the fourth quarter is expected to be flat to slightly down. The currency impact in the fourth quarter of 2015 is expected to negatively impact revenue by approximately $75 million to $85 million. Fourth quarter 2015 constant currency revenue growth guidance is negatively impacted by approximately 5 to 6 percentage points due to the extra selling week in the fourth quarter of 2014, which is the result of five fewer selling days in the fourth quarter of 2015 versus the prior year quarter. During its earnings conference call today, St. Jude Medical will provide an update to its range for revenue expectations for the full-year 2015 by product category.

The company expects its consolidated adjusted net earnings for the fourth quarter of 2015 to be in the range of $1.00 to $1.02 per share and for full-year 2015 consolidated adjusted net earnings to be in the range of $3.93 to $3.95. A further reconciliation of the company’s quarterly guidance is provided in the schedules at the end of the press release.

Conference Call / Webcast

St. Jude Medical’s third quarter earnings call can be heard live via webcast today beginning at 7 a.m. CT via the St. Jude Medical Investor Relations website (investors.sjm.com). Approximately one hour following the call, a replay will be available (archived for 90 days) on the Investor Events and Presentations webpage in the Investor Relations section of the St. Jude Medical website.

St. Jude Medical will also be tweeting live during the call on our Investor Relations Twitter account, @StJudeMedicalIR.

About St. Jude Medical

St. Jude Medical is a global medical device manufacturer dedicated to transforming the treatment of some of the world’s most expensive epidemic diseases. The company does this by developing cost-effective medical technologies that save and improve lives of patients around the world. Headquartered in St. Paul, Minn., St. Jude Medical has four major clinical focus areas that include cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation. For more information, please visit sjm.com or follow us on Twitter @StJudeMedicalIR.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements include the expectations, plans and prospects for the Company, including potential clinical successes, anticipated regulatory approvals and future product launches, and projected revenues, margins, earnings and market shares. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond the Company’s control and the risk factors and other cautionary statements described in the Company’s filings with the SEC, including those described in the Risk Factors and Cautionary Statements sections of the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015 and Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2015. The Company does not intend to update these statements and undertakes no duty to any person to provide any such update under any circumstance.

Summary of 3Q15 Sales and Reconciliation to Constant Currency Sales Growth
(in millions)
(unaudited) Constant Constant
3Q15 Sales 3Q14 Sales Reported % Currency %

Reported

...

More