St. Jude’s Solid Q2

St. Jude Medical, Inc. has released sales and net earnings for the second quarter ended June 28, 2014, showing net sales up by 3% over the same period a year ago, at $1.448 billion.

Background

The company reported net sales of $1.448 billion in the second quarter of 2014, a 3 percent increase on a reported and constant-currency basis over net sales of $1.403 billion in the second quarter of 2013. Favorable foreign currency translation comparisons increased second quarter sales by approximately $4 million.

By Business Area

Cardiac Rhythm Management (CRM) sales, which include implantable cardioverter defibrillator (ICD) and pacemaker products, were $733 million for the second quarter of 2014, a 2 percent increase compared with the second quarter of 2013. Of that total, ICD product sales were $462 million in the second quarter, a 2 percent increase compared with the second quarter of 2013. Pacemaker sales were $271 million, a 3 percent increase compared with the second quarter of 2013.

Atrial Fibrillation (AF) product sales for the second quarter totaled $257 million, an 8 percent increase over the second quarter of 2013.

Cardiovascular sales, which primarily include vascular and structural heart products, were $351 million for the second quarter of 2014, a 3 percent increase compared to the second quarter of 2013. Of note, structural heart product sales were $171 million, a 6 percent increase compared with the second quarter of 2013. Sales of vascular products in the second quarter of 2014 were $180 million, a 1 percent increase over the second quarter of 2013.

Neuromodulation product sales were $107 million in the second quarter of 2014, down 1 percent compared with the second quarter of 2013.

Earnings

In the second quarter, the company recognized net after-tax charges of $21 million, or $0.08 per share, primarily related to continued actions associated with previously announced restructuring activities. Including these items, reported net earnings for the second quarter of 2014 were $270 million or $0.93 per share, compared with reported net earnings for the second quarter of 2013 of $115 million or $0.40 per share.

Company comments

St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, “The progress we made during the second quarter positions us to accelerate sales growth while continuing to deliver EPS leverage. Our growth is based on differentiated medical technology that improves patient outcomes and reduces the cost of health care.”

Projections

For the remainder of 2014, the company is predicting a Q3 revenue figure of between $1.315 billion and $1.395 billion with full year expectation of $5.640 billion to $5.760 billion. Consolidated adjusted net earnings for the third quarter of 2014 are expected to come in between $0.95 to $0.97 per share and for full-year 2014 consolidated adjusted net earnings to now be in the range of $3.96 to $4.01.

Source: St. Jude Medical, Inc., Business Wire

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