By Dow Jones Business News, October 16, 2013, 08:09:00 AM EDT
By Tess Stynes
St. Jude Medical Inc.'s ( STJ ) third-quarter earnings rose 49% as the medical-device maker reported more signs of
stabilization for its key heart-rhythm products.
For the year, the company raised its per-share adjusted earnings estimate to $3.72 to $3.74 on revenue of $5.39
billion to $5.47 billion, from its previously increased estimate for a per-share profit of $3.70 to $3.73 and sales
between $5.35 billion and $5.48 billion.
For the current quarter, the company forecast per-share adjusted earnings of 95 cents to 97 cents on revenue of $1.32
billion to $1.36 billion. Analysts polled by Thomson Reuters most recently expected per-share profit of 96 cents and
revenue of $1.39 billion.
Medical-device makers continue to face pricing pressures and impacts from consumers delaying some medical procedures
amid economic uncertainty. Meanwhile, St. Jude Medical's implanted defibrillators--representing a third of total
revenue--had suffered as critics raised doubts about the safety of the Durata lead used in its implantable
defibrillators. Vice President John Heinmiller said in July that new safety data for the wiring was helping St. Jude's
sales team in "turning the corner away from the controversies."
In the latest quarter, total cardiac-rhythm management sales were flat excluding currency impacts, while implanted
defibrillators sales rose 2% and pacemaker sales dropped 3%.
St. Jude Medical reported a profit of $262 million, or 90 cents a share, up from $176 million, or 56 cents a share, a
year earlier. The company had projected 88 cents to 90 cents. Excluding restructuring-related items, year-earlier
adjusted earnings were 83 cents.
Net sales increased 1% to $1.34 billion, and excluding currency fluctuations revenue was up 3%. Analysts recently
expected $1.32 billion.
Shares closed Tuesday at $55.38 and were inactive in recent premarket trading. The stock is off 3.1% from a nearly 2
1/2 year high earlier this month.
Write to Tess Stynes at firstname.lastname@example.org
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