St. Jude Medical says 4Q income will top estimates

St. Jude Medical says 4th-qtr income will be better than expected on lower costs, solid sales

ST. PAUL, Minn. (AP) -- St. Jude Medical Inc. said Wednesday its income in the fourth quarter will be greater than it had expected, saying its sales were solid and its cost-cutting plan is working.

The company said it expects to report adjusted income of 90 to 92 cents per share, and said its sales fell to $1.37 billion during the quarter. In October St. Jude said its earnings per share would be between 86 cents and 88 cents, and revenue would be between $1.32 billion to $1.39 billion. St. Jude said unfavorable foreign currency exchange rates were responsible for most of the year-over-year decrease in revenue.

Analysts were expecting adjusted income of 87 cents per share on revenue of $1.37 billion on average, according to FactSet.

St. Jude said sales of heart rhythm devices fell 6 percent to $682 million. Implantable defibrillator sales fell 3 percent to $422 million and pacemaker sales decreased 11 percent to $260 million.

Sales of devices that treat atrial fibrillation, a type of irregular heartbeat, rose 10 percent to $239 million. Revenue from vascular products and neuromodulation pain devices both declined.

The company will report results Jan. 23.

St. Jude shares rose 13 cents to $37.30 on Wednesday and slipped 3.5 percent, or $1.30, to $36 in after-hours trading.