THE SPARK: Thoratec reported its quarterly results after the market closed on Wednesday. The company said its profit increased 46 percent to $15.3 million, or 25 cents per share, from $10.5 million, or 17 cents per share. Excluding one-time costs Thoratec said it earned 38 cents per share. Revenue grew 12 percent to $109.4 million from $97.6 million.
Analysts expected Thoratec to report a profit of 33 cents per share and $107.5 million in revenue.
THE BIG PICTURE: For the full year, the Pleasanton, Calif., company said its profit rose 35 percent to $71.5 million, or $1.19 per share, and its revenue rose 10 percent to $422.7 million. It said sales of its HeartMate pumps, which are intended for patients who are waiting for a heart transplant or for those who are too sick to have heart transplant surgery, grew 10 percent to $366.3 million in 2011. Sales of acute surgical support products like its external CentriMag and PediMag pumps grew to $25.7 million from $17.7 million in 2010.
Sales of Thoratec brand products fell 4 percent year over year to $28.2 million.
The company said it expects an adjusted profit of $1.58 to $1.68 per share in 2012 and said revenue will grow to $445 million to $460 million. Thoratec expects sales of HeartMate and CentriMag products to keep growing and further declines in Thoratec product revenue.
Analysts are forecasting a profit of $1.66 per share and revenue of $459.3 million on average.
THE ANALYSIS: Raymond James analyst Jayson Bedford said Thoratec had a "solid rebound" in sales, and its U.S. results were stronger than he expected. However he said the company is still expecting its revenue growth to slow down in 2012, and maintained a "Market Perform" rating on the stock.
SHARE ACTION: Thoratec shares tumbled in November after the company reported mixed third-quarter results and lowered its annual sales forecast. Its shares fell 12.7 percent on Nov. 2 and had continued trading around those levels over the last three months. The stock advanced $3.66, or 11.9 percent, to $34.47 in afternoon trading.
