California medical device maker Thoratec (NSDQ:THOR) posted another strong quarter to cap off a year of growth in sales and fewer hits to revenues.
The heart pump maker dove into the black in its 4th quarter compared with the same period last year, when the company’s bottom line was sunk by a $50.2 million hit from asset impairment charges. Excluding special charges, per-share earnings were flat for 4th quarter and down 5.5% for the year.
Thoratec posted profits of $13.1 million, or 23¢ per diluted share, on sales of $128.2 million during the 3 months ended December 28. That compared with losses of $14.4 million, or 25¢ per share, on sales of $128.5 million during the same period last year. Adjusted per-share earnings amounted to 38¢, flat year-over-year and about 3¢ shy of analysts’ consensus estimates.
Fiscal year 2013 revenues gained about 2.3% year-over-year, but adjusted earnings dropped 7.2%, Thoratec reported.
The company posted profits of $73.3 million, or $1.28 per diluted share, on sales of $502.8 million for the year. That compared with profits of $56.2 million, or $1.38 per share, on sales of $491.7 million in 2012. Adjusted 2013 earnings came to $1.78, 11¢ short of analysts’ projection.
"We were pleased with our financial performance for the 4th quarter and full year, supported by robust growth in the worldwide market for mechanical circulatory support therapy and our successful launch of HeartMate II in Japan," president & CEO Gary Burbach said in prepared remarks. "Our progress in 2013 in terms of product and market development positions Thoratec well to continue advancing the field of [mechanical circulatory support]."
Looking forward, the company expects healthy movement in 2014, with sales growth between 3.6%-6.6%, in the range of $520-$525 million. Thoratec expects to reported adjusted 2014 per-share earnings of $1.72 to $1.82, representing growth of 0%-5.8% year-over-year.
Modest 2013 figures coupled with a robust outlook for the year ahead curried some Wall Street favor, with THOR trading up by 1.7% to close at $34.37 last night.
"We expect 2014 will be an eventful year for Thoratec as we launch clinical studies of next generation chronic LVAD technology with HeartMate III, and for the percutaneous acute care market with HeartMate PHP," Burbach said in prepared remarks. "Our 2014 guidance projects revenue growth for Thoratec that should create a foundation for acceleration in future years as we realize the potential of our exciting pipeline programs."
