Grossman will take over the positions from Gary F. Burbach effective immediately. Burbach stepped down from his executive and board positions at the medical instruments and supplied company, but will remain on as an advisor through the first quarter of 2016.
Grossman previously served as president and CEO of Thoratec from 1996 to 2006, and recently served as president and CEO of Conceptus.
In the same release announcing the new president and CEO, Thoratec announced it expects revenue of $102 million to $107 million in the third quarter, below the Capital IQ Consensus Estimate of $109.54 million for the quarter.
TheStreet Ratings team rates THORATEC CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate THORATEC CORP (THOR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- THOR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.38, which clearly demonstrates the ability to cover short-term cash needs.
- THORATEC CORP's earnings per share declined by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, THORATEC CORP increased its bottom line by earning $1.26 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.26).
- Looking at the price performance of THOR's shares over the past 12 months, there is not much good news to report: the stock is down 29.87%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, THOR is still more expensive than most of the other companies in its industry.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Health Care Equipment & Supplies industry. The net income has decreased by 24.9% when compared to the same quarter one year ago, dropping from $23.19 million to $17.41 million.
- You can view the full analysis from the report here: THOR Ratings Report