Boston, MA 10/15/2014 (wallstreetpr) – St. Jude Medical, Inc. (NYSE:STJ) Chairman, President and CEO, Daniel Starks, said that its sales growth in international markets were slower than its expectations. However, it witnessed accelerated growth in the U.S. as a result of strength in innovation and new products like heart failure monitoring system of CardioMEMS.
He said that the worldwide market trends have forced the company to adjust its guidance for the fourth quarter. Starks added that the company was fully committed to providing an innovation-based growth plan, which would add considerable value to the health care system. He was confident that it would add value to the patient care and cut down the costs.
Outlook
In a statement issued to the media, St. Jude said that it expects adjusted net earnings of $1.02 – $1.04 a share on revenues of $1.385 – $1.465 billion for the fourth quarter. The outlook fell short of the analysts’ expectations of $1.04 a share on revenues of $1.49 billion.
Similarly, for the current year, St. Jude Medical, Inc. (NYSE:STJ) is expecting to achieve adjusted earnings of $3.97 – $3.99 a share on revenue of $5.568 – $5.648 billion.
3Q Results
St. Jude reported net earnings of $238 million for the third quarter, down 9.2% from $262 million in the same quarter last year. Its earnings too fell 9% to 82 cents a share from 90 cents a share in the year-ago quarter. However, on an adjusted basis, its net income advanced 7.3% to $281 million and earnings 7.8% to 97 cents a share.
St. Jude Medical, Inc. (NYSE:STJ)’s top line grew 2.5% to $1.37 billion from $1.34 billion in the previous year quarter. While sales from the U.S. segment grew 3% to $666 million from $646 million, sales from the international division increased 2% to $706 million from $692 million in the prior year quarter.
St. Jude’s Cardiac Rhythm Management recorded 1% growth in sales to $688 million while Cardiovascular sales grew 2% to $324 million. Its AF product sales advanced 8% to $253 million and that of Neuromodulation 3% to $107 million during the third quarter.
St. Jude Medical, Inc. (NYSE:STJ) closed the third quarter with cash and cash equivalents of $1.29 billion, lower than $1.37 billion at the end of December last year.
