Cardiovascular medical devices maker St. Jude Medical, Inc. (STJ: Quote) reported Wednesday a profit for the fourth quarter that edged down from last year, driven mainly by lower sales. Sales of Cardiac Rhythm Management treatment tailed off, but revenues from Atrial Fibrillation helped the bottom line.
Adjusted earnings per share topped analysts' expectations by two cents, while quarterly revenues matched their estimates. The company also provided earnings outlook for the first quarter and for the full-year 2013, both above Street view.
"We are particularly pleased with the strong growth of our atrial fibrillation business, our ability to maintain share in the global ICD market and exceeding prior earnings per share guidance for the quarter," Chairman, President and CEO Daniel Starks said in a statement.
The St. Paul, Minnesota-based company reported net earnings of $120 million or $0.39 per share for the fourth quarter, compared to $125 million or $0.39 per share in the year-ago quarter.
Excluding special items, adjusted net earnings for the quarter was $285 million or $0.92 per share, compared to $274 million or $0.86 per share in the year-ago quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter decreased 2 percent to $1.37 billion from $1.41 billion in the same quarter last year, and matched twenty-three Wall Street analysts' consensus estimate of $1.37 billion. However, revenues declined only 1 percent after adjusting for the impact of foreign currency.
Total cardiac rhythm management sales were $682 million, down 6 percent, with implantable cardioverter defibrillator sales dropping 3 percent and pacemaker sales declining 11 percent from last year.
Atrial fibrillation product sales were $239 million, up 10 percent, while neuromodulation product sales declined 7 percent to $113 million from last year.
Total cardiovascular sales, which primarily include vascular and structural heart products, were flat with last year at $338 million, with sales of vascular products declining 2 percent, while structural heart product sales remained flat with last year.
For fiscal 2012, the company reported net income of $752 million or $2.39 per share, lower than $826 million or $2.52 per share in the prior year.
Excluding special items, adjusted net earnings for the year was $1.10 billion or $3.48 per share, compared to $1.07 billion or $3.28 per share in the year ago. Analysts expected the company to report earnings of $3.46 per share for fiscal 2012.
Net sales for the full year declined 2 percent to $5.50 billion from $5.61 billion in the previous year. Street was looking for full-year 2012 revenues of $5.50 billion.
"We remain firmly committed to delivering strong EPS growth in 2013 without sacrificing investment in our broad portfolio of pipeline products," Starks added.
Looking ahead to the first quarter of fiscal 2013, the company expects consolidated adjusted net earnings in a range of $0.91 to $0.93 per share. Analysts expect the company to report earnings of $0.89 per share for the quarter.
For fiscal 2013, the company anticipates consolidated adjusted net earnings in the range of $3.68 to $3.73 per share. Street is looking for full-year 2013 earnings of $3.62 per share.
STJ closed Tuesday's regular trading session at $39.67, up $0.32 on a volume of 3.93 million shares. In the past 52-week period, the stock has been trading in a range of $30.25 to $44.80.