By Jon Kamp
Of DOW JONES NEWSWIRES
St. Jude Medical Inc. (STJ) lowered on Wednesday its full-year sales outlook following a third quarter in which disruptions in buying patterns at U.S. hospitals hurt sales of heart-rhythm devices.
While St. Jude isn't ready to issue 2010 guidance, it does expect double-digit sales growth next year excluding the impact of foreign currency, Daniel J. Starks, chairman and chief executive, said on a conference call.
He also said the St. Paul, Minn., medical-devices company continues to target at least 15% growth in earnings per share in 2010 and beyond.
The midpoint of St. Jude's new 2009 sales guidance suggests 10% sales growth this year, excluding currency. The company now forecasts total sales on the year of $4.62 billion to $4.69 billion, Chief Financial Officer John C. Heinmiller said on the call. That compares with guidance issues in July for full-year sales in a $4.72 billion to $4.85 billion range.
Among major business units, St. Jude's new guidance includes sales of heart-rhythm devices such as pacemakers and defibrillators in a $2.75 billion to $2.78 billion range. The atrial fibrillation business, which includes devices that address a common rhythm issue that can heighten the risk of strokes, is seen posting full-year sales of $607 million to $622 million.
Sales in the cardiovascular business are expected to range between $943 million and $958 million, while the business for neuromodulation devices is seen posting sales between $320 million and $325 million.
Heinmiller noted that the fourth quarter this year includes one less selling week than the fourth quarter a year ago. Changes in assumptions about currency rates, meantime, will modestly boost expected results in the current quarter.
In an earlier release, St. Jude lowered its full-year earnings guidance, excluding items, to a range of $2.41 to $2.43 per share.
Shares of St. Jude were recently up slightly to $33.20 per share premarket.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com