St. Jude Medical Inc. (NYSE:STJ) shares rose today on news of its first-quarter sales and earnings and of FDA approval of its aortic valve replacement system, the Trifecta.
STJ shares were up 2.7 percent to $52.37 as of about 10:40 this morning, after the St. Paul, Minn.-based medical device maker reported profits of $233.4 million, or 71 cents per diluted share, on sales of $1.38 billion for the three months ended April 2 — a 9.0 percent top-line increase compared with Q1 2010.
And although its net earnings slipped 2.2 percent compared with the same period last year, that figure includes the $28.1 million St. Jude spent acquiring and integrating AGA Medical, which it bought for $1.03 billion in November 2010. Excluding those 9-cent-per-share charges, adjusted net earnings were up 6.7 percent to $261.5 million, or 80 cents adjusted diluted EPS.
Chairman, president and CEO Daniel Starks said the company’s plan to return to sustainable double-digit sales growth is on track, citing improved gross margins, elevated R&D spending and a sunny forecast for the rest of the year.
St. Jude raised its full-year earnings guidance to $3.28 to $3.33 per adjusted diluted share, excluding the impact of the AGA Medical deal.
The Trifecta approval from the Food & Drug Administration should help boost sales for STJ’s surging cardiovascular business even further. The unit posted revenues of $327 million during the quarter, up 28 percent over Q1 2010, partially due to help from AGA and its structural heart products.
The valve is made using a polyester-and-tissue-covered titanium stent base, attached to valve leaflets made of pericardial tissue. It’s been on the market in Europe and Canada since last year. About 90,000 U.S. patients have open heart valve replacement surgery each year, according to the company.