News Column

St. Jude's 2Q profit doubles, firm raises outlook for rest of year

July 16, 2014

By Patrick Kennedy, Star Tribune (Minneapolis)



July 16--St. Jude Medical Inc. said its second-quarter profit more than doubled as sales rose solidly for heart-related devices.

The Little Canada-based company raised its outlook for the rest of the year based in part on the performance.

St. Jude said its net profit was $270 million, or 93 cents a share, up from $115 million, or 40 cents a share, a year ago.

Adjusted earnings, which exclude one-time charges and credits, amounted to $295 million, or $1.02 a share, compared to $275 million, or 96 cents a share, a year ago.

Sales increased 3 percent to $1.45 billion.

Sales of cardiac rhythm management products, St. Jude's largest product category, were $733 million, up 2 percent. Sales of atrial fibrillation products amounted to $257 million, an 8 percent increase.

During the period, St. Jude closed on its $375 million acquisition of the remaining portion of Atlanta-based CardioMEMS Inc. it didn't already own. CardioMEMS makes an implantable heart failure monitoring device.

Earlier this week, St. Jude announced a $200 million dollar acquisition of NeuroTherm Inc., a maker of chronic pain management therapies. The acquisition is expected to boost St. Jude's chronic pain management business. Sales of its existing neuromodulation products dipped 1 percent in the latest quarter to $107 million.

In raising its guidance, St. Jude said it now expects full-year sales to be about $30 million higher, in the range of $5.64 billion to $5.76 billion. It lifted its earnings per share forecast by a penny to a range of $3.96 to $4.01.

For the first six months, St. Jude reported sales of $2.8 billion, up 2.6 percent. Net earnings were $519 million, up from $338 million. Adjusted earnings were $573 million, or $1.98 a share, up from $538 million, or $1.87 a share.

Patrick Kennedy -- 612-673-7926

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(c)2014 the Star Tribune (Minneapolis)

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Source: Star Tribune (Minneapolis, MN)


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