On May 20, 2013, we downgraded
) to Underperform based on its first quarter 2013 earnings
On May 2, Thoratec announced its results for the reported
quarter. The company reported first-quarter 2013 adjusted
earnings per share of 34 cents missing the Zacks Consensus
Estimate of 40 cents.
Revenues dropped 7% year over year to $117.7 million in the
first quarter, missing the Zacks Consensus Estimate of $123
million. Geographically, domestic sales dropped 11.2% year over
year to $92.3 million, while overseas sales increased 10.9% to
$25.4 million. By product, HeartMate sales dropped 7.9% to $102.9
Heartware International Inc.
) received approval in Nov 2012 from the FDA for its Ventricular
Assist System as a bridge to transplantation (BTT). Consequently,
Thoratec has lost market share in the BTT market leading to
revenue shortfall. However, there is no imminent competitive
threat from HeartWare in the Destination Therapy (DT) segment, as
its product is not expected to be launched in the near
Commercialization of next generation HeartMate III is still
some time away and HeartWare is expected to close the gap.
Thoratec continues to do well in international markets although
the base is small. In April 2013, the company received
reimbursement approval in Japan for HeartMate II as a BTT
Over the past month, the Zacks Consensus Estimate for 2013 has
dipped 7.8% to $1.54. The Zacks Consensus Estimate for 2014 has
gone down 9.6% over the same timeframe.
The stock carries a Zacks Rank #4 (Sell). We are more
Becton, Dickinson and Company
) which carries a Zacks Rank #2 (Buy) and is expected to do well.
) carries a Zacks Rank #1 (Strong Buy) and warrants a look.
BECTON DICKINSO (BDX): Free Stock Analysis
CONCEPTUS INC (CPTS): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
THORATEC CORP (THOR): Free Stock Analysis
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