Thoratec Q3 Results Beat Estimates, Lifts FY13 Earnings View; Shares Up

(RTTNews) - Shares of Thoratec Corp. (THOR) increased around 3 percent in the extended trading on Wednesday after the provider of device-based mechanical circulatory support therapies reported third-quarter adjusted earnings per share above Street estimates, and lifted its fiscal 2013 earnings view. In the third quarter, net profit, however, declined due to higher costs and margin erosion.

Gary Burbach, President and Chief Executive Officer said, "Thoratec generated strong results during the third quarter, highlighted by continued growth in our HeartMate II and CentriMag product lines. We continue to drive expansion of the worldwide market for MCS therapy and delivered international revenue growth of 32 percent during the quarter."

For the third quarter, net income decreased to $18.90 million or $0.32 per share from $24.26 million or $0.41 per share last year.

Adjusted net income, which excluded certain items, was $28.5 million, compared to last year's $29.2 million. Adjusted earnings per share were $0.49, same as last year.

On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.40 for the quarter. Analysts' estimates typically exclude special items.

Revenues were $126.44 million, a 7 percent increase from $117.77 million in the same period a year ago. Analysts expected revenue of $121.30 million for the quarter.

The HeartMate product line contributed $112.8 million of revenues, 7 percent higher than last year, driven primarily by expansion of international business and the Pocket Controller launch. The CentriMag product line's revenues climbed 39 percent.

Gross margin was 67.6 percent,lower than prior year's 69.3 percent due primarily to costs associated with the introduction of the Pocket Controller and the impact of the U.S. medical device excise tax. Adjusted gross margin was 69.4 percent, compared to 71.4 percent in the same quarter last year.

Looking ahead for fiscal 2013, Thoratec now projects earnings per share in a range of $1.30 to $1.35, and adjusted earnings per share in a range of $1.80 to $1.85.

Earlier, the company expected net income per share in the range of $1.23 to $1.33, and adjusted net income per share in the range of $1.69 to $1.79.

Further, the company tightened its revenue forecast to a range of $500 million to $505 million from its previous guidance range of $490 million to $510 million.

Analysts expect the company to report fiscal 2013 profit per share of $1.75 on revenue of $502.63 million.

Burbach added, "We remain solidly on track to achieve our targets for 2013 and continue to invest in strategies to promote sustainable long term growth, while strengthening our industry leading position within the field of mechanical circulatory support."

Thoratec shares closed Wednesday's trading at $39.35, down $0.64 or 1.60 percent. In the after hours trading, shares gained $1.25 or 3.18 percent and traded at $40.60.