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St. Jude Medical Inc. (STJ - Analyst Report) posted a 7.6% rise in adjusted net earnings per share to 99 cents for the fourth quarter of 2013 from 92 cents a year-ago and beat the Zacks Consensus Estimate by 3 cents. Reported earnings were $123 million or 42 cents per share in the quarter, compared with $120 million or 39 cents per share in the comparable quarter of 2012.

For full-year 2013, adjusted net earnings rose 8.0% to $3.76 per share from $3.48 per share in the prior year. Reported net earnings were $723 million or $2.49 per share in the year compared with $2.39 in 2012.

Revenues

Revenues for the year grew 3.6% to $1,422 million for the quarter, exceeding the Zacks Consensus Estimate of $1,381 million. Unfavorable foreign currency translation reduced revenues by roughly $27 million.

At constant currency, net revenues increased 6% over the prior-year quarter. Revenues from the U.S. rose 4.7% to $641 million while international revenues increased 2.4% to $641 million.

For the full-year, net revenues declined marginally to $5,501 million from $5,503 million in 2012 as unfavorable foreign currency translation reduced revenues by roughly $101 million. With this, net revenues missed the Zacks Consensus Estimate of $5,460 million. At constant-currency, net revenues grew 2% over the prior year.

Product Division Results

In the Cardiac Rhythm Management (CRM) division, revenues went up 3% to $705 million, while it increased 5% excluding the impact of foreign currency. However, CRM revenues slipped 2% to $2,783 million in 2013, and fell 1% at constant currency.

Of the total revenues in the CRM division, implantable cardiac defibrillator (ICD) revenues escalated 5% (both on a reported and constant-currency basis) to $442 million. For the full-year 2013, ICD product revenues were flat at $1,741 million, compared with 2012. However, on a constant-currency basis, ICD revenues inched up a meager 1% over the prior year.

In the CRM division, pacemaker revenues inched up 1% to $263 million. At constant-currency, pacemaker product revenues rose 4% in the quarter. However, for 2013, pacemaker revenues went down 6% to $1,042 million, and declined 4% at constant-currency.

In the Atrial Fibrillation (AF) division, revenues scaled up 5% to $252 million, while at constant currency it increased 8% over the fourth quarter of 2012. For full-year 2013, AF product revenues escalated 7% to $957 million, and rose 9% at constant-currency.

In the Cardiovascular division, revenues grew 4% to $350 million in the quarter and rose 7% at constant-currency. For 2013, cardiovascular revenues rose marginally by 1% to $1,335 million from the prior year. At constant-currency, cardiovascular revenues increased 3% in the year.

Of the total revenues in cardiovascular division, vascular product revenues edged up 2% to $183 million at constant currency. For 2013, vascular product revenues rose 2% to $704 million at constant currency.

Meanwhile, structural heart product revenues grew 12% to $167 million at constant currency. For 2013, structural heart product revenues rose 3% to $631 million, and went up 5% at constant currency.

In the Neuromodulation division, revenues went up 2% to $115 million in the fourth quarter, both on a reported and constant-currency basis. Total neuromodulation product revenues for 2013 edged up 1% to $426 million over 2012 level.

Financial Position

St. Jude Medical had cash and cash equivalents of $1,373 million as of Dec 28, 2013, up 15.0% from $1,194 million as of Dec 29, 2012. Total debt rose 16.2% to $3,580 million as of Dec 28, 2013 compared with $3,080 million as of Dec 29, 2012. Consequently, debt-to-capitalization increased to 44.8% from 42.9% as of Dec 29, 2012.

Guidance

For the first quarter of 2014, STJ expects revenues in the range of $1,280 million to $1,360 million while the company anticipates adjusted net earnings per share to lie between 94 cents and 96 cents for the quarter. The current Zacks Consensus Estimates for earnings per share and revenues for the quarter are pegged at 96 cents and $1,372 million.

For full year 2014, St. Jude Medical anticipates revenues in the range of $5,600 million to $5,750 million and adjusted net earnings per share between $3.94 and $3.99. The current Zacks Consensus Estimates for earnings per share and revenues for the year are pegged at $3.98 and $5,644 million.

Our Take

We are impressed with STJ’s fourth quarter results, which topped estimates at both fronts. Moreover, the company’s clear-cut guidance is encouraging. Currently, St. Jude carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the medical products industry include Cardiovascular Systems Inc. (CSII - Snapshot Report), Covidien plc (COV - Analyst Report), and NuVasive, Inc. (NUVA - Snapshot Report). All of them carry a Zacks Rank #1 (Strong Buy).

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