WASHINGTON (dpa-AFX) - Medical equipment maker St. Jude Medical Inc. (STJ) said Wednesday that it now projects that its fourth quarter adjusted earnings per share will be in the range of $0.90 to $0.92, exceeding the top end of the company's previously issued guidance by $0.02 to $0.04. Analysts polled by Thomson Reuters expect the company to report earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.
While announcing the third-quarter result, the company had expected its adjusted net earnings for the fourth quarter to be in the range of $0.86 to $0.88 per share.
Adjusted earnings per share for the fourth quarter excludes net charges totaling approximately $0.50 to $0.60 per share, primarily related to ongoing restructuring actions and certain other corporate charges. The company attributes this over-performance to its sales results along with the implementation of cost savings initiatives during the quarter.
The company expects to report net sales of approximately $1.372 billion for the fourth quarter of 2012, down approximately 1 percent from last year's fourth quarter after adjusting for the negative impact of foreign currency. Twenty three analysts had consensus revenue estimate of $1.37 billion for the quarter.
Daniel Starks Chairman, President and Chief Executive Officer said, 'St. Jude Medical's fourth quarter revenue fell within or exceeded all of our previously announced guidance ranges. These preliminary sales results, combined with our implementation of significant cost savings initiatives in 2012, make us comfortable that we will exceed our previously announced adjusted earnings per share guidance range by $0.02 to $ 0.04 for the fourth quarter
Fourth quarter CRM sales were approximately $682 million, a 6 percent decrease compared with the fourth quarter of 2011. Total CRM sales for the fourth quarter decreased 5 percent after adjusting for the impact of foreign currency.
Atrial Fibrillation product sales for the fourth quarter were approximately $239 million, an increase of 10 percent over the fourth quarter of 2011. On a constant currency basis, total AF sales for the fourth quarter increased 11 percent.
Total cardiovascular sales, which primarily include vascular and structural heart products, were $338 million for the fourth quarter of 2012, a 1 percent decrease from the fourth quarter of 2011.
Fourth quarter sales of neuromodulation products were approximately $113 million, a 7 percent decrease compared to the fourth quarter of 2011. Revenue for the fourth quarter decreased 6 percent after adjusting for the impact of foreign currency.
The company said it will release its fourth quarter and full-year results on January 23.
STJ closed Wednesday's regular trading at $37.30, up $0.13 or 0.35%. In the after-hours, the stock is further up $0.70 or 1.88%.
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