St. Jude Medical Logs Double-Digit Sales Growth
July 20 2016 - 8:30AM
Dow Jones News
St. Jude Medical Inc., in the midst of being acquired by Abbott
Laboratories, said solid demand at home and overseas pushed revenue
11% higher in its latest quarter.
The St. Paul, Minn., medical device maker received an
unsolicited $25 billion bid from Illinois-based Abbott in April,
one deal in 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. St.
Jude has itself been working to tap new markets, buying
heart-device maker Thoratec last summer for $3.4 billion.
St. Jude and Abbott have said that they expect to close the
merger in the fourth quarter. On Wednesday, St. Jude Chief
Executive Michael Rousseau expressed optimism over the combined
company's potential.
In its latest quarter, the device maker logged 10% sales growth
in international markets. Meanwhile, domestic sales rose 12%.
Double-digit gains in revenue from atrial fibrillation, heart
failure and neuromodulation devices offset an 8% decline in
world-wide cardiac rhythm management sales.
Over all for the quarter, St. Jude reported a profit of $238
million, or 83 cents a share, down from year-earlier earnings of
$290 million, or $1.02 a share. Excluding acquisition-related
expenses and charges associated with the amortization of intangible
assets, among other items, per-share profit rose to $1.06 a share
from $1.03.
Revenue climbed 11% to $1.56 billion.
Analysts projected $1.06 in adjusted earnings per share on $1.55
billion in sales, according to Thomson Reuters.
Given the pending merger, St. Jude withdrew its outlook for the
year.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
July 20, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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