("=St Jude 3Q Profit Up 25% On Margin, Sales Gains; View
Raised," at 7:54 a.m. EDT, misstated the percentage increase for
cardioverter defibrillators in the eighth paragraph. The correct
version follows:)
St. Jude Medical Inc.'s (STJ) third-quarter earnings rose 25%,
as profit topped expectations amid cost containment and sales
gains.
The medical-device maker also boosted its 2010 profit target for
the third time, raising it to $2.98 to $3 a share from $2.86 to
$2.91 as it projected 72 cents to 74 cents a share for the fourth
quarter. Analysts' average estimate is 70 cents a share, according
to Thomson Reuters.
Chairman and Chief Executive Daniel J. Starks said the latest
results "reinforce our conviction that our growth program is on
track and that St. Jude Medical is well positioned to continue
growing long term at a superior rate."
The company, which specializes in cardiovascular products such
as heart valves and pacemakers, has seen higher sales lately on
across-the-board strength. On Monday, St. Jude said it will acquire
AGA Medical Holdings Inc. (AGAM) for roughly $1.08 billion in cash
and stock to add products used to treat heart defects and
blood-vessel issues.
St. Jude reported a profit of $208.4 million, or 63 cents a
share, up from $166.9 million, or 48 cents a share, a year earlier.
Excluding acquisition and restructuring impacts, profit rose to 72
cents from 59 cents a share. In July, the company predicted 67
cents to 69 cents a share.
Sales increased 6.9% to $1.24 billion. Analysts polled by
Thomson Reuters had most recently forecast $1.25 billion.
Gross margin fell to 72.6% from 73.6%. But that was more than
offset by overhead costs rising just 2.7%.
Sales in cardiac rhythm, which makes up the bulk of the
company's business, rose 7% while implantable cardioverter
defibrillators increased 13%.
Shares closed at $39.76 Tuesday and were inactive premarket. The
stock has risen 20% the past year.
-By Nathan Becker and Kevin Kingsbury, Dow Jones Newswires;
212-416-2855; nathan.becker@dowjones.com