) posted a 12.8% rise in adjusted earnings to 44 cents per share
in the second quarter of the year from 39 cents a year ago while
net earnings improved 9.2% to $25.7 million from $23.6 million in
the 2012-quarter. With this, earnings surpassed the Zacks
Consensus Estimate by 8 cents per share.
Reported earnings per share increased 14.3% to 40 cents from 35
cents in the 2012-quarter while reported net earnings rose 11.4%
to $23.2 million from $20.8 million a year ago.
Revenues in the quarter rose 10.0% to $130.5 million, exceeding
the Zacks Consensus Estimate of $121 million. Thanks to the
company's HeartMate product line that contributed $115.7 million
to overall revenues, reflecting a 9% year-over-year increase due
to the expansion of its international business, including the
recent commercial launch in Japan.
Revenues from CentriMag product line soared 44% to $11.5 million
but the same from PVADTM and IVADTM product line fell 29% to $2.7
million in the quarter.
Gross income rose 7.6% to $91.2 million from $84.7 million a year
ago. Nevertheless, adjusted gross margin declined 150 basis
points (bps) to 69.9% from 71.4% in the second quarter of 2012.
The decrease was attributable to manufacturing variances, and the
impact of the U.S. medical device excise tax, partially offset by
lower intangible amortization expense and the absence of the
Levitronix Medical fair market value inventory adjustment.
Adjusted operating income went up 6.0% to $35.6 million from
$33.6 million a year ago. However, adjusted operating margin fell
100 bps to 27.3% from 28.3% in the second quarter of 2012.
Thoratec Corporation's cash and investments were $270.9 million
as of Jun 29, 2013, up 3.4% from $262.1 million as of Mar 30,
2013, and up 4.0% from $260.4 million as of Dec 29, 2012.
THOR reiterated its revenue guidance of $490 million-$510 million
for 2013. Adjusted earnings per share for the year are expected
in the range of $1.69 to $1.79 considering the previously
disclosed $6-7 million of recurring operating expenses
(approximately 7 cents per share on an after-tax basis)
associated with the development of recently acquired DuraHeart
Thoratec Corporation 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. THOR has also developed small diameter vascular
grafts for use in hemodialysis access and coronary artery bypass
surgery. Currently, it retains a Zacks Rank #2 (Buy).
Other stocks that are also performing well in the medical
instruments industry include
Mindray Medical International Limited
) with a Zacks Rank #1 (Strong Buy), and both
Echo Therapeutics, Inc.
IDEXX Laboratories, Inc.
) with a Zacks Rank #2 (Buy).
ECHO THERAPEUT (ECTE): Free Stock Analysis
IDEXX LABS INC (IDXX): Free Stock Analysis
MINDRAY MEDICAL (MR): Free Stock Analysis
THORATEC CORP (THOR): Free Stock Analysis
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