St. Jude Medical announced Thursday its quarterly earnings increased 39%, beating analyst estimates. Net income came in at $160.2 million ($0.46/share), compared to $115 million ($0.32/share) last year, which included a $0.06/share restructuring charge. Revenue increased 13% to $927 million. Analysts at Thomson Financial forecasted $0.45/share on revenues of $926 million. The medical device maker noted sales of implantable cardioverter defibrillators, or ICDs, increased 17% to $318 million. At the same time, it reduced its full-year estimate on company-specific ICD sales to $1.257-$1.287 billion due to slower-than-expected core growth in the ICD market, CEO Daniel J. Starks told analysts on the company's earnings conference call (full transcript later today). On Oct. 15, medical device maker Medtronic halted sales of its defibrillation leads amid concerns over fracturing. In a post-earnings note, Standard & Poors said it does not believe STJ will benefit from the recall, and that it expects the overall ICD market to be disrupted as a result. "Our third quarter results reinforce our confidence that our long-term growth program is on track. We are raising our earnings per share guidance for 2007 and expect to enter 2008 well positioned to deliver earnings per share growth of at least 15%," said CEO Daniel Starks. The company projects fourth-quarter earnings of $0.47-$0.48/share, which is in-line with estimates, and sees full-year 2007 earnings coming in between $1.72 and $1.73 per share. Shares of STJ were last down 3.58% to $43.86.
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Stocks to watch: STJ. Competitors: BSX, MDT. ETFs: IHI, HHE.
Earnings call transcript: St. Jude Medical Q2 2007