DOW JONES NEWSWIRES
St. Jude Medical Inc.'s (STJ) first-quarter profit rose 19% on
higher sales across the board.
Results topped expectations, and the medical-device maker--which
specializes in cardiovascular products such as heart valves and
pace-makers--raised its 2010 earnings target 9 cents to a range of
$2.80 to $2.85 a share and projected a second-quarter profit of 73
cents to 75 cents. Analysts estimated 71 cents on average,
according to Thomson Reuters.
Chairman and Chief Executive Daniel Starks said Wednesday the
latest results benefited from its recent restructuring efforts. "We
entered the second quarter with good momentum and with major new
product launches scheduled for the remainder of the year," he
added.
St. Jude began cutting costs and overall inventory levels when
disruptions in buying patterns at U.S. hospitals affected sales of
heart-rhythm devices. The heart-device maker had the highest
portion of sales in the market and has the most to gain while its
competitor Boston Scientific Corp. (BSX) struggles with a sales
halt of some defibrillators.
St. Jude reported a profit of $239 million, or 73 cents a share,
up from $201 million, or 58 cents, a year earlier. The latest
results excluded a 2-cent tax benefit from a federal research
credit Congress has yet to extend for 2010.
Revenue increased 11% to $1.26 billion, with three percentage
points of it from favorable currency adjustments.
The company previously forecast earnings of 66 cents to 68
cents. Analysts polled by Thomson Reuters estimated revenue of
$1.23 billion.
Gross margin rose to 74.6% from 74% on higher sales.
Sales in cardiac rhythm, which make up about 60% of total
revenue, rose 11%, as sales for implantable cardioverter
defibrillator increased 15%.
Shares closed at $41.00 Tuesday and were inactive premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com