Fueled by heart defibrillator sales and cost-containment measures, St. Jude Medical Inc. reported a 25 percent increase in third-quarter earnings.
The Little Canada-based medical technology company said Wednesday that net earnings for the quarter ended Oct. 2 were $208 million, or 63 cents a share, compared with $167 million, or 48 cents a share, for the same quarter of 2009.
Adjusted net earnings for the quarter were $238 million, or 72 cents a share -- analysts expected 68 cents a share.
"In terms of large-cap medical technology companies, St. Jude is one company that is executing pretty effectively," said Bruce Jackson, an analyst with Morgan Joseph & Co. Inc.
St. Jude reported charges in the quarter of $11 million related to acquisition of LightLab Imaging Inc. of Massachusetts for $90 million, and $12 million for research and development. Sales in the quarter rose 7 percent, to $1.2 billion.
Sales of implantable cardioverter defibrillators (ICDs) and pacemakers were $738 million, up 7 percent. Of that, ICD sales rose 13 percent to $439 million. ICDs are stopwatch-sized devices that shock an irregularly beating heart back into rhythm. Sales of devices to treat atrial fibrillation, an abnormal quivering of the heart, increased 8 percent to $169 million.
Neuromodulation product sales were $93 million, up 11 percent, while sales of cardiovascular devices, including vascular closure plugs and heart valves, increased 4 percent to $240 million.
"Our third-quarter 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," CEO Daniel Starks said.
St. Jude on Monday said it was buying AGA Medical Holdings Inc., a Plymouth maker of devices to treat heart defects, for $1.1 billion.
Starks told Wall Street analysts Wednesday that the acquisition "has the potential to become a major new growth driver for St. Jude Medical."
For the fourth quarter, the firm expects earnings of 72 cents to 74 cents, with full-year earnings at $2.98 to $3. Analysts expected full-year earnings of $2.91 per share. Shares fell $1.22 to close at $38.54.
Janet Moore • 612-673-7752
