St. Jude Medical Inc.
) posted a 7.6% rise in adjusted net earnings per share to 99
cents for the fourth quarter of 2013 from 92 cents a year-ago and
beat the Zacks Consensus Estimate by 3 cents. Reported earnings
were $123 million or 42 cents per share in the quarter, compared
with $120 million or 39 cents per share in the comparable quarter
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For full-year 2013, adjusted net earnings rose 8.0% to $3.76 per
share from $3.48 per share in the prior year. Reported net
earnings were $723 million or $2.49 per share in the year
compared with $2.39 in 2012.
Revenues for the year grew 3.6% to $1,422 million for the
quarter, exceeding the Zacks Consensus Estimate of $1,381
million. Unfavorable foreign currency translation reduced
revenues by roughly $27 million.
At constant currency, net revenues increased 6% over the
prior-year quarter. Revenues from the U.S. rose 4.7% to $641
million while international revenues increased 2.4% to $641
For the full-year, net revenues declined marginally to $5,501
million from $5,503 million in 2012 as unfavorable foreign
currency translation reduced revenues by roughly $101 million.
With this, net revenues missed the Zacks Consensus Estimate of
$5,460 million. At constant-currency, net revenues grew 2% over
the prior year.
Product Division Results
Cardiac Rhythm Management
(CRM) division, revenues went up 3% to $705 million, while it
increased 5% excluding the impact of foreign currency. However,
CRM revenues slipped 2% to $2,783 million in 2013, and fell 1% at
Of the total revenues in the CRM division, implantable cardiac
defibrillator (ICD) revenues escalated 5% (both on a reported and
constant-currency basis) to $442 million. For the full-year 2013,
ICD product revenues were flat at $1,741 million, compared with
2012. However, on a constant-currency basis, ICD revenues inched
up a meager 1% over the prior year.
In the CRM division, pacemaker revenues inched up 1% to $263
million. At constant-currency, pacemaker product revenues rose 4%
in the quarter. However, for 2013, pacemaker revenues went down
6% to $1,042 million, and declined 4% at constant-currency.
(AF) division, revenues scaled up 5% to $252 million, while at
constant currency it increased 8% over the fourth quarter of
2012. For full-year 2013, AF product revenues escalated 7% to
$957 million, and rose 9% at constant-currency.
division, revenues grew 4% to $350 million in the quarter and
rose 7% at constant-currency. For 2013, cardiovascular revenues
rose marginally by 1% to $1,335 million from the prior year. At
constant-currency, cardiovascular revenues increased 3% in the
Of the total revenues in cardiovascular division, vascular
product revenues edged up 2% to $183 million at constant
currency. For 2013, vascular product revenues rose 2% to $704
million at constant currency.
Meanwhile, structural heart product revenues grew 12% to $167
million at constant currency. For 2013, structural heart product
revenues rose 3% to $631 million, and went up 5% at constant
division, revenues went up 2% to $115 million in the fourth
quarter, both on a reported and constant-currency basis. Total
neuromodulation product revenues for 2013 edged up 1% to $426
million over 2012 level.
St. Jude Medical had cash and cash equivalents of $1,373 million
as of Dec 28, 2013, up 15.0% from $1,194 million as of Dec 29,
2012. Total debt rose 16.2% to $3,580 million as of Dec 28, 2013
compared with $3,080 million as of Dec 29, 2012. Consequently,
debt-to-capitalization increased to 44.8% from 42.9% as of Dec
For the first quarter of 2014, STJ expects revenues in the range
of $1,280 million to $1,360 million while the company anticipates
adjusted net earnings per share to lie between 94 cents and 96
cents for the quarter. The current Zacks Consensus Estimates for
earnings per share and revenues for the quarter are pegged at 96
cents and $1,372 million.
For full year 2014, St. Jude Medical anticipates revenues in the
range of $5,600 million to $5,750 million and adjusted net
earnings per share between $3.94 and $3.99. The current Zacks
Consensus Estimates for earnings per share and revenues for the
year are pegged at $3.98 and $5,644 million.
We are impressed with STJ's fourth quarter results, which topped
estimates at both fronts. Moreover, the company's clear-cut
guidance is encouraging. Currently, St. Jude carries a Zacks Rank
Some better-ranked stocks in the medical products industry
Cardiovascular Systems Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).