St.Jude Rides Out The Storm April 20, 2012
Barely a day goes by without us mentioning St. Jude Medical, Inc. However, today’s coverage relates more to its newly released financials than its ongoing quest to attain the moral high ground in its ICD-related “heated debate” with Medtronic and the Cardiology community.
The Company reported net Q1 sales of $1.395 billion in the first quarter of 2012, which on a currency neutral basis, represents net sales growth of 2 percent over the first quarter of 2011 despite revenue decreases in Cardiac Rhythm Management.
Sales by business area
Total Cardiac Rhythm Management (CRM) sales, which include ICD and pacemaker products, were $735 million for the first quarter of 2012, a 4 percent decrease compared with the first quarter of 2011. Of that total, ICD product sales were $450 million in the first quarter, a 3 percent decrease compared with the first quarter of 2011. Pacemaker sales were $285 million, a decrease of 4 percent from the comparable quarter of 2011.
Atrial Fibrillation (AF)
AF product sales for the first quarter totalled $221 million, a 13 percent increase over the first quarter of 2011. These include EnSite Velocity as pictured left (Image courtesy of St. Jude Medical Inc.)
Sales of neuromodulation products were $103 million in the first quarter of 2012, up 12 percent from the comparable quarter of 2011.
Total cardiovascular sales, which primarily include vascular and structural heart products, were $336 million for the first quarter of 2012, a 3 percent increase over the first quarter of 2011.
Sales of vascular products during the first quarter of 2012 were $181 million, down 2 percent from the comparable quarter of 2011.
Structural heart product sales for the first quarter of 2012 were $155 million, an 8 percent increase over the first quarter of 2011.
Including a variety of after-tax charges relating to restructuring and streamlining activities within the CRM business, together with $25M in other after tax charges, reported net earnings for the first quarter of 2012 were $212 million, or $0.67 per share. This compares to reported net earnings for the first quarter of 2011 of $233 million, or $0.71 per share.
Second Quarter and Full Year 2012 Sales and Earnings Guidance
The Company expects its consolidated adjusted net earnings for the second quarter of 2012 to be in the range of $0.86 to $0.88 per diluted share and is raising its full-year 2012 guidance to be in the range of $3.44 to $3.49.
St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “First quarter results exceeded expectations for sales and adjusted earnings per share. This was driven especially by innovations designed to improve patient outcomes and reduce the cost of health care such as our new line of Unify Quadra ICDs in the U.S. We look forward to building on our strong start to 2012 by introducing our Portico line of transcatheter heart valves and our EnligHTN line of renal denervation products in Europe before the end of this year.”
Source: St. Jude Medical Inc., Business Wire