3 things to know from st. jude's second quarter

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Transcript of 3 things to know from st. jude's second quarter

  • 3 Keys From St. Jude Medicals Q2 Earnings You Need to Know
  • An Impressive Earnings Beat St. Jude Medical crushed its Q2 earnings on Wednesday, beating projections on top and bottom lines Adjusted EPS jumped to $1.02 in the quarter, up from 40 cents a year ago Revenue also climbed, gaining more than 3% Logo source: St. Jude Newsroom
  • #1: CRM Surprise St. Jude delighted investors with a 2% gain in cardiac rhythm management (CRM) device sales CRM market has been hit hard by tight hospital budgets, tough competition, and falling prices. Chief rival Boston Scientific is a prime example of the downturn, with falling CRM sales in each of the past two years The biggest boost to St. Judes CRM division: International sales jumped in Q2, climbing 4% YOY The businesss growth is important for the company. CRM sales made up just over 50% of St. Judes total sales in the quarter.
  • Can St. Judes Heartbeat Strengthen? St. Judes CRM business still faces tough hurdles ahead of consistent growth Obamacares expansion projected to slow CRM market growth in the U.S. through 2020, according to research firm GlobalData International growth is St. Judes best bet: Europe and emerging markets are expected to gain market share as the worldwide CRM market could see up to 4.6% annual growth between 2012 and 2020 Competition could cause problems. Medtronics acquisition of Covidien gives the device giant and St. Jude rival more leverage to negotiate with hospitals and an advantage over competitors in an era of shrinking hospital budgets Source: St. Jude Medical Media Kit
  • #2: Atrial Fibrillation Still On Track Atrial Fibrillation is St. Judes biggest growth driver: Division saw 8% overall sales growth in Q2 International growth thrived, with a 10% jump in revenue YOY Source: St. Jude Medical Media Kit
  • Can Atrial Fibrillation Keep Pumping Growth? Atrial fibrillation is one of St. Judes best growth hopes and the company needs to keep pushing hard into this market Transparency Market Research projected annual AF market growth of more than 13% between 2012 and 2019 Business currently makes up only around 17% of total company sales, but this market increasingly is emerging as an important cog of St. Judes long-term future prospects
  • #3: Neuromodulation St. Judes promising neuromodulation business stumbled in Q2, falling 1% YOY A tale of two businesses: While international revenue climbed by 29%, U.S. neuromodulation sales plunged by 11% to lead the drop Source: St. Jude Medical Media Kit
  • Better Days Ahead? While St. Judes business dropped, potential still abounds in this market and the companys pushing ahead at full steam Transparency Market Research projects greater than 14% annual growth in the neuromodulation device market between 2012 and 2018 The company paid $200 million earlier this month to acquire NeuroTherm, a company focused on chronic pain management, to beef up neurostimulation portfolio St. Jude is also pushing to achieve FDA approval for its Prodigy device in treating chronic pain, a growing market thats expected to continue climbing as the U.S. population ages
  • Looking Ahead St. Jude slightly boosted its full-year earnings outlook, raising the guidance by a penny and lifting the bottom end of its full-year revenue guidance. The companys Q3 EPS projection lines up with analyst estimates, but with the struggles of the CRM market in the recent past, St. Jude will need to keep growth churning in order to meet Wall Streets expectations
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