) posted flat adjusted earnings of 33 cents per share for the
2014-first quarter compared with the year-ago level but beat the
Zacks Consensus Estimate by 6 cents.
Adjusted earnings edged down 1.8% to $19.2 million from $19.5
million in the comparable quarter a year ago. Since the earnings
announcement, shares of the company dipped 3.7%.
THOR's revenues in the quarter rose 6.8% to $125.7 million,
surpassing the Zacks Consensus Estimate of $124.0 million. Revenues
from the U.S. upped 3.6% to $95.6 million while the same from
international business grew 18.5% to $30.1 million.
Revenues from the flagship HeartMate product line came in at $110.0
million, reflecting a 6.9% year-over-year increase due to the
expansion of its international business. Revenues from CentriMag
were $13.0 million, up 25.0% from the year-ago level. However,
revenues from PVAD and IVAD fell 39.5% to $2.3 million in the
Adjusted gross profit rose 27.0% to $86.7 million from $84.4
million a year ago. However, adjusted gross margin declined 270
basis points (bps) to 69.0% from 71.7% in the first quarter of
2013. The decrease was attributable to inventory-related charges
and manufacturing variances, partially offset by favorable product
Adjusted operating income went up 9.0% to $28.3 million from $25.9
million a year ago. Adjusted operating margin rose 50 bps to 22.5%
from 22.0% in the first quarter of 2013.
THOR had cash and investments of $108.7 million as of Mar 29, 2014,
down from $139.1 million as of Dec 28, 2013. During the quarter
under study, the company utilized $13.5 million in cash to finance
For fiscal 2014, THOR expects revenues in the range of $520-$535
million. The current Zacks Consensus Estimate of $531 million lies
within the guided range. Adjusted gross margin is expected to be
70.7% for the year.
THOR also expects adjusted earnings per share (excluding stock
based compensation) of $1.39-$1.49 for the year. The current Zacks
Consensus Estimate of $1.32 million lies below the guided range.
THOR develops, manufactures and markets proprietary medical devices
used for circulatory support, vascular graft, blood coagulation and
skin incision applications. The company currently markets the
Thoratec Ventricular Assist Device System (called Thoratec VAD
System or VAD System) and the HeartMate Left Ventricular Assist
System (called HeartMate LVAS) in the U.S. and internationally for
use as a bridge to heart transplant.
Currently, THOR retains a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical instruments sector include
Natus Medical Inc.
). All of them carry a Zacks Rank #2 (Buy).
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