Medical devices maker St. Jude Medical, Inc. (STJ) Wednesday reported increased profit for the first quarter, even as sales slipped due to adverse currency impact. Further, the company updated its forecast for the year.
Net earnings rose to $262 million or $0.91 per share from $249 million or $0.86 per share in the first quarter of 2014. The latest results included credits of $0.06 per share, primarily related to acquisition-related adjustments, as well as $0.06 per share impact of amortization of intangible assets.
Reported net earnings for the first quarter 2015 do not include any benefit from the federal research and development tax credit, which has yet to be extended for 2015.
Adjusted net earnings were $0.93 per share, while it was $1.01 last year. On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales slipped 1 percent to $1.345 billion from $1.363 billion in the year-ago quarter. On a constant currency basis, net sales grew 5 percent from last year. Wall Street expected revenues of $1.32 billion.
In Cardiac Rhythm Management or CRM, sales dropped 6 percent to $643 million. The division includes implantable cardioverter defibrillator and pacemaker products.
Atrial Fibrillation sales rose 7 percent to $270 million, and grew 15 percent in constant currency.
Total cardiovascular sales, including structural heart and vascular products, were flat with last year at $324 million. On a constant currency basis, cardiovascular sales increased 7 percent from the prior year quarter.
St. Jude Medical Chairman, President and Chief Executive Officer Daniel J. Starks said, "St. Jude Medical's first quarter revenue exceeded previously announced guidance, driven by our growth in atrial fibrillation, neuromodulation and our CardioMEMS technology platform. These results reinforce our confidence that St. Jude Medical is on track to accelerate constant currency sales growth in 2015."
For the second quarter, St. Jude Medical expects revenue to grow in the range of 4 percent to 5 percent on a constant currency basis, compared to the previous year with adverse currency impact of $125 million to $135 million.
The company expects its consolidated adjusted net earnings for the quarter to be in the range of $0.99 to $1.01 per share. Analysts expect the company to report earnings of $0.99 per share and revenues of $1.40 billion for the second-quarter.
For the full-year 2015, the company now expects total revenue to grow in the range of 4 percent to 5 percent on a constant currency basis with currency negatively impacting by $385 million to $410 million.
Consolidated adjusted net earnings are expected to be in the range of $3.92 to $3.97 for full-year 2015. Wall Street currently is looking for fiscal year 2015 earnings of $3.95 per share on annual revenues of $5.52 billion.
The company said in January that it expected adjusted net earnings for fiscal 2015 to be in the range of $3.95 to $4.00 per share and revenue to grow in the range of 3 percent to 5 percent on a constant currency basis with currency negatively impacting full-year 2015 revenue by approximately $325 million to $350 million.
STJ closed up 1.3 percent on Tuesday at $69.12.
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