Investors reacted negatively to Thoratec‘s (NSDQ:THOR) 4th-quarter and 2012 results, despite earnings in line with Wall Street’s expectations and revenues that soundly beat its forecast for the full year.
The Pleasanton, Calif.-based medical device company posted a loss of $14.4 million, or 25¢ per share, on sales of $128.5 million during the 3 months ended Dec. 29, 2012. Thoratec attributed the loss to a $50.2 million write-down on the value of its PVAD and IVAD product lines, which president & CEO Gary Burbach said accounted for less than 4% of total revenues last year.
Adjusted to exclude 1-time items, earnings per share reached 38¢, as forecast by analysts on The Street.
For the full year, Thoratec logged profits of $56.2 million, or 94¢ per share, on sales of $491.7 million. Adjusted EPS were $1.83, again meeting expectations on The Street; Thoratec itself had predicted sales of between $477 million and $483 million for the full year.
"Thoratec had an impressive year in 2012, with sales growth of 16% driven by our HeartMate II and CentriMag product lines, highlighting our leadership positions in chronic and acute mechanical circulatory support," Burbach said in prepared remarks. "We were particularly pleased to finish the year with strong 4th-quarter results, including 20% unit growth for HeartMate II on a worldwide basis, reflecting continued adoption in the U.S. destination therapy indication as well as in international markets.
"Additionally, we remain focused on investing in longer-term strategic initiatives, including late-stage development activities related to HeartMate III and HeartMate PHP, both of which we plan to bring into pivotal clinical trials later this year," he said.
Thoratec said it expects to record sales of $490 million to $510 million this year, including a $6 million hit from the medical device tax. EPS are slated to be $1.32-$1.42, with adjusted EPS expected to come in at $1.76-$1.86.
THOR shares were trading at $36.36 as of about 11:30 a.m. today, down 0.7%.
