© Gary Bistram 2009 ALL RIGHTS RESERVED. Unlimited rights granted to Saint Jude Medical

(© Gary Bistram 2009 ALL RIGHTS RESERVED. Unlimited rights granted to Saint Jude Medical)

Lagging Pacemaker Sales Don't Derail St. Jude in 3Q

By Earnings FOXBusiness

St. Jude Medical (STJ) reported improved third-quarter earnings on Wednesday despite lagging sales of pacemakers and backed its full-year outlook.

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The St. Paul, Minn.-based medical-device maker reported net earnings of $262 million, or 90 cents a share, compared with a year-earlier profit of $261 million, or 56 cents.

Adjusted for one-time items, earnings per share topped average analyst estimates in a Thomson Reuters poll by a penny.  

Revenue for the three months ended Sept. 28 increased by 1% to $1.34 billion, beating the Street’s view of $1.32 billion.

The results "demonstrate that we are successfully implementing our program to accelerate sales growth on a sustainable basis while strengthening our program with selective and disciplined acquisitions," St. Jude CEO Daniel Starks said in a statement.

A slight decline in sales of cardiac rhythm management devices, such as pacemakers, were offset by a 7% increase in atrial fibrillation device sales and increased demand for cardiovascular equipment.

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Looking toward the fourth quarter, St. Jude Medical sees revenue between $1.31 billion and $1.39 billion and non-GAAP EPS of 95 cents to 97 cents. The consensus is calling for in-line EPS of 96 cents on sales of $1.39 billion.

For the full year, it anticipates EPS of $3.72 to $3.74 on sales of $5.39 billion to $5.47 billion. Analysts on average are looking for earnings of $3.72 on sales of $5.45 billion.

Shares of St. Jude slumped about 1% after the results on Monday to $54.88. They’ve grown about 52% so far this year.