St. Jude Medical Inc.'s (STJ) first-quarter earnings fell 2.2%
as the bottom line was dinged by $28.1 million of charges related
to an acquisition, but adjusted profit rose and topped the
company's forecast.
The company also raised its current-year forecast to adjusted
earnings of $3.28 to $3.33 a share from its previous view of $3.25
to $3.30. St. Jude also forecast current-quarter adjusted earnings
of 83 cents to 85 cents a share. Analysts surveyed by Thomson
Reuters expect 84 cents.
The medical-device company's revenue has grown lately, helping
lift the bottom line. St. Jude has benefited from some new
defibrillator products that have helped it capture market share and
dodge weakening product prices, which are an ongoing concern for
the sector. The company also recently announced a new 21-cent
quarterly dividend.
St. Jude reported a profit of $233.4 million, or 71 cents a
share, down from $238.6 million, or 73 cents, a year earlier.
Excluding items such as charges related to the company's
acquisition of AGA Medical Holdings and tax benefits, earnings rose
to 80 cents from 75 cents. Revenue jumped 9% to $1.38 billion.
The company had projected 77 cents to 79 cents, and analysts had
forecast $1.38 billion in revenue.
Gross margin fell to 73.5% from 74.5%.
Shares were inactive premarket after closing the prior day at
$51. As of the close, the stock had risen 24% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;