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Heart Device Sales Boost St. Jude Profits

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Heart Model

(credit: Stephen Chernin/Getty Images)

CBS Minnesota (con't)

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ST. PAUL, Minn. (AP) — St. Jude Medical Inc. said Wednesday its net income grew 9 percent in the fourth quarter on better sales of implantable heart defibrillators.

St. Jude earned $206.4 million, or 62 cents per share, in the three months ended Jan. 1. That’s up from $189.7 million, or 57 cents per share, a year ago. Excluding acquisition costs, a legal settlement, and a tax credit, the company said its profit rose to 75 cents per share from 64 cents per share. Revenue increased 12 percent to $1.35 billion from $1.2 billion. The results were in line with a forecast the company gave earlier this month.

Analysts expected earnings of 74 cents per share and $1.32 billion in revenue, according to FactSet. Analyst estimates generally exclude one-time costs and gains.

The company said sales of heart rhythm devices rose 9 percent to $762 million. Sales of implantable defibrillators climbed 16 percent to $458 million, while pacemaker sales held steady at $304 million.

Cardiovascular product sales increased 20 percent to $287 million after St. Jude bought heart device maker AGA Medical. The company said AGA’s products added $25 million to its sales. Heart valve product revenue rose 10 percent to $87 million, and vascular closure product sales fell 2 percent to $92 million. Sales of devices that treat atrial fibrillation — a condition in which the upper chambers of the heart do not beat in synch with the lower chambers — rose 13 percent to $193 million. Revenue from neuromodulation devices, which are designed to treat pain and other conditions by stimulating the nervous system, grew 15 percent to $108 million.

St. Jude said changes in foreign currency exchange rates reduced its total sales by about $14 million.

For 2010, St. Jude’s net income increased 17 percent to $907.4 million, or $2.75 per share, from $777.2 million, or $2.26 per share. Revenue rose 10 percent to $5.16 billion from $4.68 billion.

The company said it expects to earn $3.25 to $3.30 per share in 2011, including a first-quarter profit of 77 to 79 cents per share. The outlook met Wall Street estimates, as analysts had forecast an annual profit of $3.28 per share, including 78 cents per share in the first quarter.

St. Jude shares declined 96 cents, or 2.3 percent, to $41.66 in midday trading.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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