By Tess Stynes
St. Jude Medical Inc. said its first-quarter earnings rose 12%
as the medical device maker reported modest sales growth at its
core heart-rhythm device business.
For the year, the company raised its per-share adjusted earnings
estimate to $3.95 to $4 and revenue view to $5.61 billion to $5.76
billion, from its January estimates for per-share adjusted earnings
of $3.94 to $3.99 and revenue of $5.6 billion to $5.75 billion.
For the current quarter, St. Jude forecast per-share earnings of
99 cents to $1.01 and revenue of $1.38 billion to $1.46 billion.
Analysts polled by Thomson Reuters expected a per-share profit of
$1 and revenue of $1.44 billion.
The St. Paul, Minn.-based company has battled industrywide
pressures--including pricing pressures from hospitals and
insurers--in addition to regulatory and legal scrutiny regarding
the frequency and necessity of some surgeries. St. Jude also has
faced its own share of problems, including controversy over the
durability and safety of the wires, or leads, used to connect its
defibrillators to patients' hearts.
St. Jude reported a profit of $249 million, or 86 cents a share,
up from $223 million, or 78 cents a share, a year earlier.
Excluding restructuring-related charges and other items, adjusted
earnings rose to 96 cents from 92 cents. Revenue increased 1.9% to
$1.36 billion. Excluding currency fluctuations, sales rose 4%.
The company expected a per-share profit of 94 cents to 96 cents
and revenue of $1.28 to $1.36 billion.
In the latest quarter, total cardiac-rhythm management sales
rose 3% excluding currency impacts, while implanted defibrillators
sales increased 3% and pacemaker sales improved by 2%.
In January, St. Jude unveiled plans to integrate its two
operating divisions into one research-and-development organization,
and to combine its manufacturing and supply-chain operations
world-wide. The move aims to build on streamlining efforts
announced in August 2012.
Write to Tess Stynes at tess.stynes@wsj.com
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