Preliminary revenue results for St. Jude’s fourth quarter see it expecting to report net sales of approximately $1.439 billion for the fourth quarter of 2014, a 1 percent increase over the equivalent period a year ago. On a currency neutral basis, the increase nets out at approximately 5 percent.
Performance by division
Cardiac Rhythm Management (CRM)
CRM sales declined by 3 percent (1 percent increase in common currency) at $685 million. Underpinning this total, Implantable Cardiac Defibrillator (ICD) sales were $426 million in the fourth quarter, a 4 percent decline compared to the fourth quarter of 2013 (flat on constant currency basis). Pacemaker sales were $259 million, a 2 percent decline compared to the fourth quarter of 2013 (3 percent constant currency increase).
Atrial Fibrillation (AF)
Atrial fibrillation product sales for the fourth quarter were approximately $283 million, an increase of 12 percent over the fourth quarter of 2013 (17 percent constant currency).
Total cardiovascular sales, which primarily include vascular and structural heart products, were $347 million for the fourth quarter of 2014, a 1 percent decline compared with the fourth quarter of 2013 (Constant currency increase of 3 percent).
Structural heart product sales for the fourth quarter of 2014 were $159 million, a 5 percent decrease from the fourth quarter of 2013 (1 percent constant currency decrease).
Sales of vascular products increased 3 percent to $188 million (7 percent increase on a constant currency basis).
Neuromodulation product sales were approximately $124 million, an 8 percent increase over the prior year (10 percent constant currency).
Fourth Quarter Earnings Results
St. Jude Medical is reaffirming that its fourth quarter adjusted earnings per share will be within the company’s previously issued guidance range of $1.02-$1.04. Adjusted earnings per share for the fourth quarter exclude net after-tax charges totaling approximately $0.14 per share, primarily related to impairment charges and ongoing restructuring actions offset by the retroactive tax benefit of the federal research and development credit.
President and Chief Executive Officer Daniel J. Starks said, “The progress we made in 2014 will position us well to accelerate sales in 2015 as we continue to execute on delivering our diverse portfolio of innovative solutions. Preliminary sales from each product category in the fourth quarter were either within or above our previously issued guidance range, with momentum from our CardioMEMS technology and atrial fibrillation business.”
Share Repurchase Program
The company also announced that its board of directors has authorized the repurchase of up to $500 million of St. Jude Medical common stock. The repurchases will occur at such times and at such prices as the management of the company determines and may be effected through transactions in the open market, in privately negotiated transactions or otherwise.
Any shares acquired in the $500 million repurchase program will be available for general corporate purposes, including offsetting dilution associated with stock option and other equity-based employee benefit plans. The company had approximately 287 million shares of common stock outstanding as of Jan. 13, 2015.
Commenting on the share repurchase program, Starks said, “Today’s announcement of a $500 million share repurchase program reflects the strong confidence our management team and our board of directors have in our long-term growth and success.”
Source: Business Wire