St. Jude Medical’s Q4 profits cut in half

Fourth-quarter profits for St. Jude Medical (NYSE:STJ) were off more than 50%, the medical device company said today, as its $3 billion acquisition of Thoratec put a $179 million hit on the bottom line.

Little Canada, Minn.-based St. Jude posted profits of $113 million, or 39¢ per share, on sales of $1.45 billion for the 3 months ended Jan. 2, for a bottom-line slide of -53.9% on sales growth of 0.6%.

Adjusted to exclude 1-time items, earnings per share were $1.02, a penny ahead of the consensus on Wall Street.

Full-year profits were off -12.2% to $880 million, or $3.07 per share, on sales of $5.54 billion, marking a top-line slide of -1.4%. Adjusted EPS came in at $3.94, again a penny ahead of The Street.

“We are pleased with the momentum we achieved in 2015 in our atrial fibrillation, heart failure and neuromodulation businesses and with the significant progress we have made integrating Thoratec, which had a strong fourth quarter. In 2016, we expect to continue our focus on these key areas which will drive our growth and allow us to deliver a comprehensive portfolio of innovative technologies to patients around the world,” president & CEO Michael Rousseau said in prepared remarks.

St. Jude said it expects 1st-quarter adjusted EPS of 87¢ to 89¢ on flat sales growth excluding currency effects. Full-year adjusted EPS are pegged at $3.95 to $4.05 on constant-currency sales growth of 2% to 4%.

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