St. Jude Medical, Inc. has reported sales and net earnings for the third quarter ended September 28, 2013. The headline is that sales have nudged up a few percentage points across the board, while net earnings have shot up, presumably as a result of earlier restructuring activities having the desired effect.
With its recently announced acquisitions of force sensing ablation catheter company Endosense and leadless pacemaker company Nanostim, it looks like St.Jude Medical has made a few strategically brilliant moves. What must be even more gratifying for it is the resilience of its sales and income during what has undoubtedly been a challenging period for the company.
Excluding the impact of foreign currency exchange fluctuations, net sales increased by approximately 3% from the third quarter of 2012. Unsuprisingly St.Jude is sounding pretty chirpy about this headline figure as it represents a reversal of the 3% decline seen in Q2. Underpinning that picture, the company’s three divisions, Cardiac Rhythm Management(CRM), Atrial Fibrillation, Cardiovascular and Neuromodulation enjoyed differing fortunes.
CRM sales were down 1% after currency adjustments, ICDs holding up while Pacemakers fell by 5% to $264m. ICD sales have actually shown an increase for the first time in over two years, suggesting confidence in Durata has returned, following clinical results which have showed no signs of externalisation in several hundred leads thus far.
Atrial Fibrillation sales of $235m were up by 7% after currency adjustments.
Cardiovascular product sales were $317m, a modest 1% increase fuelled by structural heart product sales increasing while vascular products slipped.
Neuromodulation sales of $104m were up 3% on the same period a year ago.
So at the bottom line, including special items, reported net earnings for the third quarter of 2013 were $262 million or $0.90 per share compared to reported net earnings for the third quarter of 2012 of $176 million or $0.56 per share. This represents a 61 percent increase in reported net earnings per share for the third quarter of 2013 compared to reported net earnings per share for the third quarter of 2012. After GAAP adjustments net earnings per share were 8% higher than the equivalent period a year ago.
St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “Our third quarter results demonstrate that we are successfully implementing our program to accelerate sales growth on a sustainable basis while strengthening our program with selective and disciplined acquisitions.”
Source: St.Jude Medical, Inc., Business Wire