ST. JUDE MEDICAL INC. Sees Third and Fourth Quarter 1997 Earnings Falling Below Analysts' Estimates; Expects to Incur Charge--
Sept. 18, 1997, St. Jude Medical Inc. (STJ) said earnings for the third and fourth quarters of 1997 will be below analysts' estimates.
Specifically, STJ said that, excluding certain charges, it expects earnings to be "in the range of the low twenties cents" per share for the third quarter of 1997 and "in the range of the mid-thirties cents" per share for the fourth quarter of 1997.
STJ stated that it plans to record a charge for the third or fourth quarter of 1996 in the range of $32,000,000 to $42,000,000 to deal with the impacts of anticipated cost reductions to appropriately position its Cardiac Rhythm Management Division infrastructure.
STJ explained that "anticipated cost reductions in its Cardiac Rhythm Management Division have not materialized as quickly as planned." STJ also noted that "the ramp up of sales representatives' training and certification for implantable cardioverter defibrillator products is slower than expected. Foreign currency exchange rates and lower than expected European sales will also contribute to the reduction in earnings."
According to Standard & Poor's ACE, the mean third quarter 1997 earnings estimate of a survey of analysts was $0.37 per share, and the range was $0.30 to $0.39.
STJ noted that total sales for 1997 are "still estimated to exceed $1 billion."
For the third quarter of 1996, STJ posted net income of $36,295,000, or $0.44 per share, on net sales of $193,846,000.
For the fourth quarter of 1996, STJ posted net income of $19,151,000, or $0.23 per share, on net sales of $212,689,000.
For 1996, STJ posted net income of $92,181,000, or $1.12 per share, on net sales of $808,780,000. |
