St. Jude Medical's Sales Rise 12% -- Update
October 19 2016 - 12:18PM
Dow Jones News
By Imani Moise
Heart-device maker St. Jude Medical Inc. said Wednesday that its
third-quarter revenue grew, led by a 13% sales increase abroad.
The St. Paul, Minn., company posted international sales of $716
million, up from $634 million. The U.S. region also posted strong
sales growth, rising 11% to $783 million. World-wide sales of its
heart-failure devices pulled the top line higher, growing 46%.
St. Jude agreed to a $25 billion tie-up with Illinois-based
Abbott Laboratories in April, amid a flurry of transactions as
companies across the health-care space respond to cost pressures by
beefing up to increase their negotiating leverage and gain pricing
power.
Chief Executive Michael Rousseau said the Abbott deal is on
track to close in the fourth quarter of this year. Also this week
St. Jude and Abbott announced they would sell $1.1 billion in
assets upon closing the deal.
St. Jude has been working to tap new markets, buying
heart-device maker Thoratec last year for $3.4 billion.
Overall for the quarter, St. Jude reported a profit of $212
million, or 73 cents a share, down from $215 million, or 75 cents,
a year earlier. Excluding items such as amortization and
acquisition-related costs, earnings rose to 99 cents from 97
cents.
Revenue jumped 12% to $1.5 billion.
Analysts polled by Thomson Reuters had forecast earnings of
$1.01 on $1.5 billion in revenue.
St. Jude withdrew its financial guidance for the year due to the
merger when it reported second-quarter results in July.
Shares of the company fell 0.4% to $79.13 in midday trading.
Abbott, also reporting Wednesday, swung to a loss in the latest
quarter as it booked a $947 million charge related to the
stock-price drop of embattled EpiPen maker Mylan NV, in which it
owns a 13% stake. Still, adjusted profit and revenue topped
expectations and the company narrowed -- and raised at the midpoint
-- its 2016 outlook.
Shares fell 1.8% premarket. The stock has climbed 29% so far
this year.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
October 19, 2016 12:03 ET (16:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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